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Ethereum risks 10% decline versus Bitcoin despite record ETH staking
TL;DR
Ether has dropped 5.5% against Bitcoin in the past week, with a bearish pattern suggesting a potential 10% decline to 0.026 BTC. Despite a record staking ratio of 32.33%, risks of deeper losses loom for Ethereum.
Key points
- Ether has fallen about 5.5% against Bitcoin over the past week
- Bear flag pattern indicates a risk of a 10% drop toward 0.026 BTC
- Ethereum's staking ratio is at a record 32.33%
Ether (ETH) has fallen about 5.5% against Bitcoin (BTC) over the past week, and a bearish continuation setup now points to the risk of deeper losses ahead.
Key takeaways:
- ETH/BTC’s bear flag pattern points to a possible 10% drop toward 0.026 BTC in May.
- Ethereum’s record 32.33% staking ratio is tightening liquid supply.
Ether’s bear flag risks 10% correction
The ETH/BTC ratio has been carving out a bear flag pattern since February, consolidating inside a rising parallel channel after a sharp downside move.
In technical analysis, bear flags are typically viewed as continuation patterns. Analysts derive the downside target by taking the height of the previous decline and projecting it lower from the point where price breaks below the flag’s lower trend line.
ETH/BTC daily chart. Source: TradingView
Using that method, the ETH/BTC pair’s measured downside target comes in near 0.026 BTC, about 10% below current levels, in May.
Notably, a similar bear flag breakdown earlier this year preceded a roughly 15% decline, suggesting the current setup could once again favor Bitcoin over Ether in the near term.
Conversely, the bearish breakdown setup may get postponed if ETH/BTC rebounds from the flag’s lower trend line, opening the door for a recovery toward the upper boundary near 0.032 BTC in May.
Ethereum staking ratio hits record levels
Ethereum’s fundamentals are strengthening even as ETH continues to lag Bitcoin.
The network’s staking ratio hit a record 32.33% on April 21, with about 39 million ETH locked across 816,578 validators, according to data resource Token Terminal.
Q&A
What is the current ETH/BTC ratio and its recent performance?
The current ETH/BTC ratio has fallen about 5.5% over the past week, with a potential risk of dropping to 0.026 BTC.
What does the bear flag pattern indicate for Ethereum?
The bear flag pattern suggests a possible 10% correction for Ethereum, indicating deeper losses may be ahead.
How does Ethereum's staking ratio affect its price?
Ethereum's record staking ratio of 32.33% is tightening liquid supply, which could influence its price dynamics amid the current bearish trend.
