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- The ETH/BTC drop highlighted ETH’s prolonged weakness against Bitcoin, as the latter’s dominance soared.
- Low address activity highlights caution and declining organic demand, but could things soon change?
Ethereum (ETH) just fell to its lowest level against Bitcoin (BTC) since April 2021. But could this be one of the signs that ETH and the altcoin market are about to launch a major rally in what could be the start of altcoin season?
The ETH/BTC pair hit a low of $0.0387 in the last 24 hours. This is the lowest level the currency pair has reached since April 2021.
It highlights how ETH has extended its weakness against Bitcoin, as well as a further delay in altcoin season.
Source: TradingView
At the same time, the recent decline in the ETH/BTC pair demonstrated a extended divergenceSome analysts see this as a sign that a radical change may be about to occur.
Meanwhile, Bitcoin dominance just hit a new YTD high of 58.07% over the past 24 hours.
Additionally, Bitcoin dominance also showed a potential sign of reversal with a divergence pattern.
This suggests that it could be facing a major pivot that would pave the way for an influx of liquidity into altcoins, in which case ETH would benefit.
Selling Pressure and Demand for ETH
ETH has not seen any significant outflows so far. For example, exchange reserves pivoted on September 11 after hitting a new year-to-date low of 18.52 million coins.
Source: CryptoQuant
At the time of writing, exchange reserves stood at 18.79 million ETH. This reflects the resurgence of selling pressure that returned over the weekend.
At press time, the cryptocurrency was trading at $2,298, close to its opening price on Monday of the previous week, meaning it has lost its weekly gains.
A closer look at ETH’s on-chain activity revealed that address activity had dropped to 262,786 addresses. This is the lowest number of active addresses the network has seen since mid-January 2024.
Source: CryptoQuant
This slowdown reflects the higher level of uncertainty in the market as key decisions are about to be made. Nevertheless, signs of ETH accumulation have been observed as the price has fallen.
Read Ethereum (ETH) Price Prediction 2024-2025
For example, historical concentration revealed that whale addresses dropped from 58.44 million coins on August 13 to 8.47 million coins on September 15.
Retail addresses increased from 64.94 million to 64.97 million coins during the same period. These results indicate that investors, whether whales or retail traders, are taking advantage of the discounted prices.
