altcoin king Ethereum (ETH) reinforced its weakness by losing 18 percent of its value against Bitcoin (BTC) in the last six weeks. But cryptocurrency analysts Merlijn The Traderis of the opinion that Ethereum’s potential should not be ignored. Based on historical data, the analyst suggested that the altcoin king, and with it the altcoin market, could make a strong comeback.
ETH/BTC Trading Parity is in the Critical Support Zone
According to Merlijn The Trader ETH/BTC Although the trading pair’s chart has been signaling a significant downtrend in recent weeks, it is currently testing a key support zone. This region, shown in green on the analyst’s chart, has witnessed Ethereum recoveries in the past. Therefore, despite the short-term negative outlook, Merlijn The Trader altcoin He believes his king has maintained his strong momentum.
The ETH/BTC trading pair is currently at 0.03347. This level indicates a 17 percent decrease since December. But history offers a hopeful picture. In the 2021 bull market, the rate dropped to 0.03 levels, then rose to 0.077 in two months. In this process ETHThe price of ‘s price increased by 111 percent and reached 3 thousand 800 dollars. Merlijn The Trader stated that the current decline is a natural market cycle and a new one for Ethereum. rallyHe thinks he can prepare the ground for.
Bitcoin’s Rise Could Trigger Ethereum
While Bitcoin’s rise above the 100 thousand dollar threshold makes headlines, analysts suggest that Ethereum can also benefit from this rise. Apollo co-founder Thomas FahrerHe stated that widespread adoption of Bitcoin could indirectly push the price of Ethereum to $4,000. According to analysts, Ethereum may follow Bitcoin’s leadership in this market cycle. In this scenario, of course, led by Ethereum altcoin marketcan be expected to recover.
However, there are also obstacles that Ethereum faces. The altcoin king recently fell below the critical support level at $3,500. It is currently trading at $3,421. Also, Ethereum The Merge The deflationary structure targeted by the update has not yet brought the expected results.
Merlijn The Trader warns that those who underestimate Ethereum’s current potential may miss important opportunities. The analyst emphasized that investors should follow the market carefully without ignoring past cycles.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
