Ethereum Hits Lowest Level Against Bitcoin Since March 2021: Is It ETH's Time?
The value of Ethereum against Bitcoin has declined by testing below 0.032, reaching its lowest level since March 2021. This drop occurred during a period when Bitcoin is experiencing a strong upward trend; today, Bitcoin reached a record high, and this shift in the cryptocurrency market is attributed to Bitcoin gaining momentum while Ethereum has not been able to rise at the same pace.
The ETH/BTC pair recorded a decline of around 1.5% during Asian trading hours. Since the beginning of 2024, this pair has shown a decline of over 40%. The price increase of Bitcoin is linked to the reelection of crypto-friendly Republican candidate Donald Trump and the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S., while Ethereum has recently failed to perform similarly to BTC. Is the target for Ethereum $6,000? After hitting its lowest levels since 2021 in the morning hours, the ETH/BTC pair rose to the 0.34 level due to an increase in demand for ETH. This bounce has led to a perception that the current levels may represent a bottom for ETH against BTC.
Analyst Benjamin Cowen has made a critical prediction regarding the future of Ethereum, commenting that Ethereum could target $6,000. The chart analyzed based on a logarithmic growth curve indicates a price movement consistent with Ethereum's overall growth trend. Although Ethereum is in a downtrend against Bitcoin, it has recently shown a positive trend by surpassing resistance levels in the USDT pair.
It is noted that Ethereum's breakout above the $3,000 level would gain lasting market confidence and hold significant growth potential in the future. To achieve on-chain growth and regain its former glory, it is crucial for Ethereum to engage in an active growth process in DeFi and other network sectors. Rising market confidence and overcoming technical resistance could help Ethereum reach new peaks in price.
Competition between Ethereum and Solana It is noted that Ethereum's competition as both a store of value against Bitcoin and a smart contract platform against Solana creates uncertainty among investors regarding future value. On the other hand, Solana has recorded significant growth this year, outpacing Ethereum in key metrics such as protocol fees and decentralized exchange (DEX) volumes.
Solana's alignment has gained momentum, especially with the increase in meme coins developed on the network, establishing itself as a substantial competitor to Ethereum. Solana surpassing Ethereum in daily network fees and DEX volumes indicates the maturation of the blockchain ecosystem and an actual increase in adoption. Solana's growing influence continues to challenge Ethereum's position as the most economically active smart contract platform.
Solana continues to grow According to recent blockchain data, Solana produced $11.8 million in daily network fees, while Ethereum generated only $5.3 million. On the DEX side, Solana reached $6.24 billion in trading volume over the past 24 hours, surpassing Ethereum's $850 million volume. Solana's explosive growth has been supported by a strong price increase of 300.56% since the beginning of the year, indicating an increase in network adoption and overall market momentum.
Ryan Watkins from Syncracy Capital noted that Solana has increased its protocol fees to $343 million within a year, while Ethereum remains at only $178 million. Watkins emphasizes that Solana is now recognized not only for its technical advantages but also as a robust data-supported ecosystem. Solana's growth trend continues to remain strong enough to challenge Ethereum's dominance.