- Ethereum Faces Increased Selling Pressure: Ethereum’s price has sharply declined against Bitcoin, with the ETH/BTC ratio dropping to its lowest point since April 2021.
- The liquidation of nearly $350 million in Ethereum futures and $908 million across the crypto market has significantly impacted both ETH and BTC.
- Geopolitical tensions and economic uncertainties, particularly in the Middle East and the United States, have exacerbated the volatility in the crypto market.
The cryptocurrency market change recently occurred where Ethereum (ETH) lost some ground compared to Bitcoin (BTC). The latest figure from the past 24 hours shows that long liquidations on Ethereum futures have gone up to nearly $350 million, this shows a trend in the derivative market. This situation has greatly affected the price of Ethereum compared to Bitcoins and the ETH/BTC rate is at the lowest level it has been since April 2021.
Ethereum vs. Bitcoin: A Shifting Dynamic
On the morning before the market downturn, Ethereum was valued at approximately 0.049 BTC. However, within hours, this ratio began to decline, and by Sunday afternoon, the ETH/BTC ratio had fallen below 0.048. The most dramatic shift occurred in the last 24 hours, where the ratio plummeted from 0.048 BTC to as low as 0.042 BTC.
This means in the current ranking of Ethereum to Bitcoin, Ethereum has sharply declined to a point that it was 0.029 Bitcoin four weeks ago. This implies that Ethereum was more tender and had more selling pressure than Bitcoin. It also hints at the current situation in the whole crypto market, talking about the position of Ethereum and other altcoins compared to Bitcoin during periods of high volatility.
Liquidations’ Effect on the Market
The high rate of liquidations in the crypto futures market has not only affected Ethereum but established an impact on Bitcoin as well. Thus, analyzing the $908 million of long positions across the market, around 80% affected either ETH or BTC. For instance, the liquidations on Ethereum futures have been higher than its market cap, especially when compared to those of Bitcoin meaning that Ethereum is more exposed in the current market conditions.
The current market instability has been compounded by extrinsic forces including tensions in the Middle East and in the United States which are globalization’s economic risk factors. These factors have pressured selling on leveraged positions thereby resulting in liquidation across the various levels.
Bottom Line
Therefore, although some of these dynamics are becoming more evident with the maturing of the market, it remains somewhat unclear how these will develop. All in all, although Bitcoin reclaimed and surpassed these points already in April 2021, Ethereum and most of the altcoins remain in deep trouble. These are now in focus by investors and traders, especially the macroeconomic drivers and the central bank interventions that may be afoot to alter the current trends in the crypto market in the next few weeks.
Personal Note From MEXC Team
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