Ethereum’s Price Dynamics
The price of Ethereum’s Ether (ETH) token has taken a nosedive against Bitcoin (BTC), leading to multiple lower highs throughout April. Notably, as of April 24, the ETH/BTC pair saw a significant drop of about 5.5% from its recent peak of 0.0709 BTC just days earlier. In USD terms, Ether is down nearly 15%, while Bitcoin has only dipped 11.25%
Current Support Levels and Future Risks
As it stands, ETH remains above its 50-day exponential moving average (EMA) which now rests near 0.0672 BTC. However, if historical trends hold, particularly the March 2023 fractal, Ethereum might be heading for a sharp decline below this support level. In March, the ETH/BTC pair experienced a significant pullback after testing the 200-day EMA, subsequently breaching its 50-day EMA as well.
Potential Downside Targets
Should the fractal repeat itself, a conservative estimate puts Ethereum’s price at a target of 0.0627 BTC by the end of the month—a drop of approximately 7% from current levels. This level had previously served as major support in March and April, effectively acting as a “buy zone” for traders.
Institutional Flow Insights
Despite ETH’s sluggish performance against BTC, Ethereum saw a surprising boost in institutional flows. According to a CoinShares report, Ethereum funds attracted $17 million amidst a $53.1 million outflow from Bitcoin in the week ending April 21. James Butterfill, head of research at CoinShares, highlighted that these inflows indicate investors’ growing confidence following the successful Shapella upgrade. Interestingly, all inflows were reported to have originated from Europe.
Bitcoin’s Recent Struggles
Bitcoin’s outflows began around April 14, coinciding with its ascent to the psychological resistance level of $30,000. Subsequently, BTC’s drop to below $27,500 has been attributed to profit-taking and a lack of macroeconomic catalysts influencing the market. As always, remember that venturing into the realm of cryptocurrency investments carries inherent risks, and thorough research is crucial.
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