Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH price reverse course?
Ethereum (ETH) has been on a losing streak against Bitcoin (BTC) for the past 15 months. This is the longest losing streak in Ethereum’s history. The ETH/BTC pair has fallen from a high of 0.087 BTC in May 2022 to a low of 0.056 BTC in October 2023.
This decline in Ethereum’s relative value has been attributed to a number of factors, including:
- The anticipation of a spot Bitcoin exchange-traded product (ETF) approval in the United States.
- The ongoing bear market in the crypto stock price.
- The delays in Ethereum’s upgrade to proof-of-stake (PoS).
- The increasing popularity of other Layer 1 blockchain platforms, such as Solana and Avalanche.
Despite these challenges, there are a number of reasons why Ethereum’s price could reverse course in the future. These include:
- The continued growth of decentralized finance (DeFi) and non-fungible tokens (NFTs).
- The upcoming launch of Ethereum’s Layer 2 scaling solutions.
- The increasing adoption of Ethereum by institutional investors.
In this article, we will take a closer look at the factors that have contributed to Ethereum’s recent decline, as well as the potential catalysts for a future price reversal.
Factors contributing to Ethereum’s decline
Anticipation of a spot Bitcoin ETF
One of the biggest factors contributing to Ethereum’s decline against Bitcoin is the anticipation of a spot Bitcoin ETF approval in the United States. A spot Bitcoin ETF would allow investors to track the price of Bitcoin without having to purchase the cryptocurrency directly. This could lead to a significant influx of institutional investment into Bitcoin, which would likely boost its price relative to Ethereum.
Ongoing bear market in the cryptocurrency market
The cryptocurrency market has been in a bear market for the past year. This means that the prices of most cryptocurrencies, including Ethereum, have fallen significantly. The bear market has been caused by a number of factors, including rising interest rates, inflation, and geopolitical tensions.
Delays in Ethereum’s upgrade to PoS
Ethereum’s upgrade to PoS has been delayed several times. The upgrade is expected to make Ethereum more energy-efficient and scalable. However, the delays have raised concerns among investors about the future of Ethereum.
Increasing popularity of other Layer 1 blockchain platforms
Other Layer 1 blockchain platforms, such as Solana and Avalanche, have become increasingly popular in recent months. These platforms offer faster transaction speeds and lower fees than Ethereum. As a result, some developers and users have begun to migrate to these platforms.
Potential catalysts for a future price reversal
Continued growth of DeFi and NFTs
DeFi and NFTs are two of the most important use cases for Ethereum. DeFi applications allow users to borrow, lend, and trade assets without the need for a central authority. NFTs are digital collectibles that are stored on the blockchain.
The DeFi and NFT markets have grown rapidly in recent years. This growth has led to increased demand for Ethereum, which is needed to power these applications.
Upcoming launch of Ethereum’s Layer 2 scaling solutions
Ethereum is currently working on a number of Layer 2 scaling solutions. These solutions will allow Ethereum to process more transactions per second and reduce transaction fees.
The launch of these scaling solutions is expected to make Ethereum more attractive to developers and users. This could lead to increased demand for Ethereum and a price reversal.
Increasing adoption of Ethereum by institutional investors
Institutional investors, such as hedge funds and pension funds, are becoming increasingly interested in Ethereum. This is because Ethereum is the second-largest cryptocurrency by market capitalization and has a strong track record of innovation.
The adoption of Ethereum by institutional investors could lead to a significant influx of capital into the Ethereum ecosystem. This could boost Ethereum’s price and lead to a market recovery.
Ethereum has been on a losing streak against Bitcoin live cryptocurrency prices for the past 15 months. This decline has been attributed to a number of factors, including the anticipation of a spot Bitcoin ETF approval, the ongoing bear market in the cryptocurrency market, the delays in Ethereum’s upgrade to PoS, and the increasing popularity of other Layer 1 blockchain platforms.
However, there are a number of reasons why Ethereum’s price could reverse course in the future. These include the continued growth of DeFi and NFTs, the upcoming launch of Ethereum’s Layer 2 scaling solutions, and the increasing adoption of Ethereum by institutional investors.
It is important to note that the cryptocurrency market is highly volatile and it is impossible to predict with certainty what will happen to Ethereum’s price in the future. However, the factors discussed in this article suggest that Ethereum has the potential to rebound in the long term.