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The Correction In Ethereum Price May Not Have Concluded Yet

2024-03-29 15:32:25

The price of Ethereum has experienced volatility throughout the week, and available data indicates the possibility of further downward movement.


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Following its surge to $4,091 ahead of the Dencun upgrade, Ethereum has exhibited weaker performance compared to Bitcoin and the overall cryptocurrency market in the past month. This has led traders to question whether the altcoin's downtrend has truly ended. To provide perspective, Bitcoin's price declined by 18% during this timeframe, while the total cryptocurrency market capitalization decreased by 16%. Various market and technical indicators suggest that ETH might undergo a more significant correction before initiating a lasting recovery.



During March The ETH/BTC Ratio Experienced A Downward Trend

In March, Ether has seen an 8% increase, although its performance has lagged behind Bitcoin and other prominent layer 1 tokens. Bitcoin surged by 21% over the past 30 days, while top-cap layer 1 tokens like BNB Chain and Solana experienced more significant rallies of 44% and 76%, respectively, during the same period. Throughout March, the ETH/BTC ratio consistently decreased, hitting its lowest level since January. ETH has shown relative underperformance in March, partly due to Bitcoin-specific factors in 2024. The successful launch of U.S. spot Bitcoin ETFs since SEC approval on Jan. 11 has bolstered Bitcoin's position. Additionally, the anticipation surrounding the upcoming Bitcoin supply halving, historically preceding a surge in crypto prices, has further strengthened BTC's momentum. 


Furthermore, Ethereum's network activity has witnessed a decline in specific metrics over the past week. According to data, daily active addresses on Ethereum decreased from 622,963 addresses on March 20 to 546,484 on March 26. While Ethereum continues to be a leading network in the layer 1 sector, Solana has recently gained ground, overtaking its market share in terms of on-chain activity and stablecoin transfer volume.


Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

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