• Market Cap: $2,669,567,498,800.92
  • 24h Vol: $127,898,507,048.17
  • BTC Dominance: 51.11%
Why Ethereum's price is declining in comparison to Bitcoin

Why Ethereum’s price is declining in comparison to Bitcoin

The price of Ethereum’s native token, Ether (ETH), is currently at a 15-month low against Bitcoin (BTC), marking the lowest point since Ethereum switched to proof-of-stake (PoS). Several factors have contributed to this continuous drop in the ETH/BTC pair. In the past, Ethereum often outperformed BTC during bullish market trends, but this relationship began to change in early 2023. The narrative around altcoins, including Ethereum, came under pressure as regulations against the crypto industry increased and inflows from retail and institutional investors decreased. Additionally, the rise in Bitcoin dominance has negatively impacted ETH. Bitcoin’s market dominance has reached its highest level in the last 30 months, indicating that investors are feeling more bullish about BTC and possibly allocating less money to Ether investments. The ETH/BTC pair dropped below its 200-week exponential moving average, suggesting the possibility of further downside in the short-term. These factors, along with multifaceted market dynamics, investor sentiment, and regulatory environment, are likely to continue impacting Ethereum’s price relative to Bitcoin. It is important for readers to conduct their own research and make informed decisions when it comes to investments and trading.

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