Recent data from COINOTAG indicates that as of March 13th, the ETH/BTC trading pair has experienced a significant decline, decreasing by over 1.5% to reach a low of 0.0224, the lowest level since May 2020. This downturn is part of a continued downtrend that started in June 2017, marking an impressive cumulative decline exceeding 85%. Analysts have noted that the Relative Strength Index (RSI), a crucial indicator for assessing market conditions, recently fell to a concerning 23.32, suggesting that Ethereum remains in a deeply oversold condition.
While a typical RSI below 30 may signal a potential rebound, the ongoing drop highlights that Ethereum’s position has yet to stabilize. Experts like cryptocurrency analyst Alessandro Ottaviani describe this scenario as a “falling knife,” cautioning investors that attempting to purchase at these low levels could result in further losses. Traders are advised to monitor for any signs of resistance reclaiming, particularly the 0.022 BTC threshold, which previously served as a significant support level leading to a notable price resurgence.
Current challenges facing Ethereum also stem from increasing competition, notably from emerging Layer 1 blockchains such as Solana and Sui. Additionally, Bitcoin retains its appeal as “digital gold,” drawing investments amid economic uncertainty, while Ethereum has struggled to showcase anticipated ecosystem enhancements post-transition to Proof of Stake (PoS), further exacerbating pressure on the ETH/BTC exchange rate.