Bitcoin
BTC$23 414.18

-0.57%

Ethereum
ETH$1 660.60

0.87%

Tether
USDT$1.000139

0%

Binance Coin
BNB$332.21

2.49%

USD Coin
USDC$0.999870

-0.01%

XRP
XRP$0.410035

0.05%

Ethereum loses key support level as ETH price falls to two-month lows against Bitcoin


13 Oct 2021

#Ethereum

ETH/BTC dropped below its 200-day exponential moving average for the first time since March 2020, raising risks of more downside. Ethereum’s native token, Ether (ETH), rallied by more than 15% in the first 12 days of October. But, compared to Bitcoin’s (BTC) 30% gains in the same period, the second-largest cryptocurrency is currently in a downtrend when priced in BTC. So far into October (and the fourth quarter of 2021), the ETH/BTC exchange rate has plunged by over 12%, reaching 0.060215 BTC for the first time in more than two months on Oct. 12.

The drop also pushed ETH/BTC below one of its longest-standing support zones, the 200-day exponential moving average (200-day EMA; the orange wave), as shown in the chart above. This raises the risk of more downside with 0.055304 BTC serving as the next possible target.

Bitcoin dominance rises on ETF hopes

More evidence for ETH/BTC’s weakness came from Bitcoin’s rising dominance in the crypto market. In detail, the Bitcoin Dominance Index, which measures the flagship cryptocurrency’s capitalization against the rest of the crypto market, surged from 42.39% on Oct. 1 to 46.64% on Oct. 12. On the other hand, Ether’s dominance dropped from 18.15% to 17.57% in the same period. That shows that more capital rotated into the Bitcoin market than altcoins so far into October. The rising Bitcoin dominance coincided with expectations that the United States Securities and Exchange Commission could approve four Bitcoin-based exchange-traded funds (ETF) in a matter of weeks. The applicants are Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF.

SEC Chair Gary Gensler hinted at an optimistic outcome for Bitcoin ETFs despite the SEC rejecting similar applications for eight years in a row. Gensler noted that this time, however, the Bitcoin ETF applicants filed under the Investment Company Act of 1940, which offers higher investor protection.

Earlier this week, two “light” Bitcoin ETFs started trading in the U.S., named Invesco Alerian Galaxy Crypto Economy ETF (SATO) and Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). However, the funds invest 80% of their assets in crypto-related companies, not Bitcoin itself. The SEC also approved a third crypto equity ETF. Dubbed the Volt Crypto Industry Revolution and Tech ETF (BTCR), the fund will gain exposure “in entities that hold a majority of their net assets in bitcoin or derive a majority of their earnings from bitcoin mining, lending or transacting.”

Bitcoin to go “insane?”

James Seyffart, an ETF analyst with Bloomberg Intelligence, said the news would be “very bullish” for Bitcoin. Similarly, independent market analyst Lark Davis also predicts “insane” market reactions should the SEC approve a Bitcoin ETF having exposure to actual BTC.

So, it appears the speculation over Bitcoin ETF approvals raised traders’ appetite for the top cryptocurrency in recent days, with BTC outperforming its top rivals, including Ether. Nonetheless, Ethereum boasts a strong decentralized application ecosystem and remains the key force behind the booming decentralized finance and nonfungible token sectors.

David Gokhshtein, founder of Gokhshtein Media and PAC Global, noted that Ethereum’s healthy network effect could send Ether to $10,000 by the end of this year. Meanwhile, as Cointelegraph covered, an ongoing supply crunch in the Ether market should remain a major talking point for bulls moving forward. 


Related

Why is the crypto market down today?
Why is the crypto market down today?
Five tips for investing during a global recession
Five tips for investing during a global recession
A beginner’s guide to NBA Top Shot NFTs
A beginner’s guide to NBA Top Shot NFTs
Soaring growth of Ethereum layer-2 networks set to continue in 2023
Soaring growth of Ethereum layer-2 networks set to continue in 2023
Redeeming physical NFTs: Easier said than done?
Redeeming physical NFTs: Easier said than done?
The crypto market in retreat
The crypto market in retreat
Thanks to Ethereum,
Thanks to Ethereum, "altcoin" is no longer a slur
NFT rides shotgun as Red Bull Racing closes out F1 season
NFT rides shotgun as Red Bull Racing closes out F1 season
Ether staking withdrawal schedule removal faces harsh criticism
Ether staking withdrawal schedule removal faces harsh criticism

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64.4% 76 $23 414.18 -0.57% 1.32% $451 444 140 453 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68% 64 $1 660.60 0.87% 3.91% $203 213 799 353 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000139 0% 0% $68 038 057 989 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78.4% 39 $332.21 2.49% 7.92% $52 455 756 881 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999870 -0.01% -0.02% $41 954 575 977 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 72.8% 51 $0.410035 0.05% -0.66% $20 829 395 994 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $1.000093 0.02% 0% $16 273 786 064 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 63.6% 69 $0.401700 0.32% 2.18% $13 898 855 921 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 77.6% 48 $0.093742 2.62% 6.67% $12 436 791 556 DOGE 7 days price change
10 Polygon (MATIC) MATIC Polygon predictions 66.8% 64 $1.23 4.02% 7.27% $10 780 259 861 MATIC 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 93.2% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Solana (SOL) SOL Solana predictions 60.8% 88 $24.55 0.87% -0.41% $9 145 525 743 SOL 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 66% 74 $6.94 5.67% 5.23% $8 000 392 092 DOT 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 64.4% 79 $0.000014 14.51% 18.56% $7 679 941 030 SHIB 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 78% 38 $100.23 0.95% 13.08% $7 236 835 830 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.