The major Altcoin Ethereum shows poor performance against Bitcoin (BTC) as the relative strength with key digital assets has weakened in the past few sessions.
Despite BTC hitting its all-time high yesterday, ETH prices have struggled to continue, trading sideways for the past four days. Technical indicators point to interest on consumed purchases and raise concerns that the coin can see the further downside if momentum is not picked up.
Ethereum is weak against Bitcoin
The ETH to BTC (ETH/BTC) ratio has been declining over the past few days, highlighting that Ethereum has lost its position in Bitcoin due to its relative performance. At press time, this is currently 0.036.
ETH/BTC ratio. Source: TradingView
The ETH/BTC ratio measures the relative strength of ETH compared to BTC, indicating how valuable the former is from the latter standpoint, and which assets outweigh the other.
If it falls like this, it indicates that ETH is below Bitcoin. As a result, BTC’s recent rally to the new all-time high may not be enough to lift ETH. This makes Altcoin’s prices more vulnerable to sideways or downward pressures over the next few trading sessions.
Additionally, Eth’s Chaikin Money Flow (CMF) on the daily chart has flattened over the past few sessions and started moving downwards. This indicates that capital inflows into ETH will slow further delay the possibility of a surge to $5,000.
eth chaikin money flow. Source: TradingView
The CMF indicator measures how an asset enters and leaves the asset. Once it flattens and then falls, it indicates that it weakens the pressure of buying and weakens the momentum of selling. This ensures that ETH can have a hard time gaining upward traction even when BTC gathers.
Ethereum stalls amid market uncertainty: $4,211 or $4,957 next?
The horizontal trend with flattening momentum indicators reflects indecisiveness among traders, as both buyers and sellers are completely out of control. If the downward pressure is increased, this could set a larger stage of correction.
In this scenario, the coin’s price could plummet to $4,211.
ETH price analysis. Source: TradingView
Meanwhile, if Bullside’s strength grew, ETH could attempt to meet on August 24th towards its all-time high that it last reached. However, for this to happen, the price of the ETH must first break the immediate resistance of $4,766.
Ethereum’s momentum stalls as ETH is behind Bitcoin. The pending $5,000 target first appeared on Beincrypto.
