Ethereum/Bitcoin exchange rate near three-year low, crypto market pulls back

Ethereum (ETH) is struggling to maintain its price ratio of 0.05 BTC, a key technical support level from 2021.

Ethereum (ETH) is losing key support levels relative to its larger cryptocurrency rival Bitcoin (BTC) amid a broader sell-off in global crypto markets that began on Monday.

Data from TradingView shows that 1 ETH is currently worth less than 0.05 BTC and is trading at 0.04961 at the time of writing. BTC.

If the ETH/BTC ratio drops to 1 this month, then the Bitcoin ETF should not increase selling pressure in the short term immediately after listing. Another similar ratio period was in April 2021, after Ethereum price surged, it bounced back by around 0.078 BTC in just over a month.

The second-largest crypto asset has been steadily feeding into Bitcoin since mid-March, shortly after Bitcoin hit a new all-time high above and corrected in the weeks that followed. Since then, the two assets have been relatively range-bound, while inflows into the Bitcoin spot ETF have slowed significantly.

Since last year, Bitcoin has fallen from $71,200 to $65,300, while Ethereum has fallen from $3,600 to $3,250. Last week, Alex Thorn, head of research at Galaxy Digital, predicted that ETH/BTC has yet to reach its yearly lows. He cited the upcoming Bitcoin “halving” as a bullish catalyst for BTC, and a potential Ethereum ETF rejection as a bearish signal for the latter.

"While there are some bumps here and there, the current trend is clear and complete," he wrote on Twitter on Wednesday.

ETH / BTC. Source: TradingView

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