30s Summary
Ether traders are bracing for continued price fluctuations as the ETH to BTC rate plumbs new lows. Key market analysts believe the descending trend might persist. Although this rate has rebounded strongly in the past, the general consensus suggests a price dip, particularly if Bitcoin’s price surges post the US Presidential Election. A noticeable change will require Ether to outperform Bitcoin. An addition of 82,000 ETH to crypto exchanges could signify further downturn or volatility. Post-election, the crypto market could witness major price shifts or a deeper dip for Bitcoin, warn Bitfinex analysts.
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People who trade Ether are preparing for more fluctuations in its price after the ETH to BTC rate, an important ratio in the world of cryptocurrencies, has fallen even further below its lowest point in the last three years.
Alex Thorn, the head of research at Galaxy, mentioned in his November 5th post that the ETH to BTC rate had reached new multi-year lows.
Market analyst Zach Voell thinks that there’s no end in sight for the falling rate. He commented, “Don’t let the election distract you from the fact that ETH to BTC continues to drop to new lows”. Colin Talks Crypto agreed, predicting that the ETH to BTC ratio will drop more.
The ETH to BTC rate is approximately 0.035 which is the lowest it’s been since March 2021. However, if history is any guide, it might not stay this low for long. The last time the rate was this low in March, it soared to 0.077 by May, with Ether’s price also increasing by 120% to hit $3,928.
Some are therefore predicting a stronger rebound this time, including crypto commentator Benaiah who said, “The coming surge will be epic.”
However, the overall opinion is that a fall in price is more likely. It’s expected that the price of Bitcoin will increase greatly by the end of the year due to the US Presidential Election, which would decrease the ETH to BTC rate further if Ether doesn’t also see significant gains.
Ether needs to start doing better than Bitcoin if the ETH to BTC rate is to improve. Right now, Ether is trading at $2,445. On November 5th, CryptoQuant contributor Amr Taha noted that 82,000 ETH, valued around $200.49 million, was added to derivative crypto exchanges, implying either a downturn or greater volatility.
It’s hard to say how the overall crypto market will perform once the US Presidential Election is over. Analysts at Bitfinex have warned that a major spike in volatility is expected once the election ends, which could lead to significant movements in prices or a “much deeper dip for Bitcoin on the lower timeframes.”