Ethereum Price Analysis

Ethereum price continued its downward trend against the US dollar and Bitcoin, with weekly futures entering backwardation.

Ethereum (ETH) fell to 0.023 BTC, its lowest since May 2020, and 74% below its pandemic peak.

The price also dropped to $1,770, the lowest since October 2023, and 57% down from last December’s high.

The crash is attributed to factors including ETF outflows, increased competition from other networks, and diminished profitability in the crypto market.

Kraken’s analysts noted that ETH weekly linear futures entered backwardation for the first time since August, indicating bearish market sentiment after a 20% decline in ETH price. In contrast, Bitcoin futures remain in contango, suggesting strength in BTC amid market uncertainty.

Linear weekly futures settle and pay based on prices, so backwardation signals expectations of further price drops. On the contrary, contango reflects anticipated strength in Bitcoin.

Ethereum vs Bitcoin Price Analysis


The ETH/BTC price has been declining for years, currently below all moving averages, with key support at $0.02350, the lowest from December 2020.

The Average Directional Index, measuring trend strength, is at 38, indicating a strengthening trend. The Relative Strength Index and Stochastic Oscillator are oversold, suggesting ETH could fall further to $0.0173, the December 2019 low.