The largest altcoin by market value Ethereum (ETH) $2,417 It is moving in the opposite direction of what was expected after many historical events. It fell to 0.04 against BTC for the first time since April 2021. While some experts warned about this risk months ago, the weakness seen despite the ETF approval is frightening.
Ethereum (ETH) Bottoms
Although it tested this level in August, it was able to recover quickly. However, today we saw 0.04BTC below ETHBTC parity for the first time since April 2021. At the time of writing, the parity continues to linger at the bottom of the years. Altcoins This event, which reflects the oversales for e, is also clearly seen in the TOTAL3 market value.
If the ETH price continues to lose blood against BTC, it may decline to the 0.033BTC region. At the beginning of 2021, the 0.04BTC level was challenging as resistance before ATH in USD pairs. In order to talk about a return, closings above 0.045 should be seen. If we see a new decline, in this case, we can see the price decline to $ 1,800 levels in USD pairs.
Altcoins and ETH
BTC price has been experiencing ups and downs in a limited range for 2 quarters. Bitcoin, which has not been able to overcome the resistance 
$60,106 Each decline has damaged the risk appetite in altcoins. Especially after the huge surprise long liquidations in futures, cautious investors are turning to BTC, which is less risky. If volatility is high in BTC, BTC is safer and more profitable for short-term trading rather than taking extra risk in altcoins.
Besides in altcoins before experiencing the real bull season BTC The price is expected to break an all-time record. This causes investors to be less in a hurry for altcoins, and in the environment where there are fewer buyers in BTC declines, prices will decline further.
Another problem specific to Ethereum (ETH) is inflation, which has now turned positive, as you can see below. The decrease in transaction fees by up to 90 percent, the decline in network activity and the melting of fees, etc. have caused the supply burned to remain extremely low.
For the reasons mentioned above, investors in the ETF channel are turning to BTC rather than ETH, which also feeds the weakness.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
