Ethereum (ETH) has been severely underperforming against Bitcoin (BTC) over the course of the last few days, with the cryptocurrency’s USD pair rapidly approaching a critical “last-ditch” support level which could drive a huge downturn, should it be break below.
The weakness ETH has witnessed against both USD and BTC has occurred despite it acquiring huge fundamental growth.
The cryptocurrency has seen its transaction volume go through the roof to its highs of 2017, with the massively popular DeFi trend directing huge user into the ETH blockchain.
This has caused a divergence between Ethereum’s technical and fundamental strength.
Experts don’t accept that the fundamental growth seen over recent weeks will be sufficient to prevent it from seeing a further downturn.
One expert is saying that we could see a 20% decline against its Bitcoin trading pair.
The shortcoming could be compounded by a huge influx of tokens into exchange wallets, signaling that investors are set up to offload their Ethereum if it makes any large near-term movements.
Ethereum Could Be at Risk of Large Losses Over the Coming Days.
At the time of writing, Ethereum was trading down by 1% at a price of 224 USD. This is the price level at which it has been trading over the last few days.
It has also seen a similar loss against its Bitcoin trading pair, currently trading at 0.0245 BTC.
Its decline over the last few days has made it to break below the trading range that it has been within over the last few weeks.
The range exists somewhere between 230 USD and 250 USD on its USD trading pair, and the continuous decline below its lower point seems to indicate that it may be forming a mid-term downturn.
Ethereum’s present weakness is also crystal-clear when looking towards its BTC trading pair.
One expert recently put forward a chart indicating that it might decline before long and by over 20% as it posts a rejection at the upper point of a triangle formation.
He said “ETHBTC: Feel free to remind me why my bearish bias on ETH over the last several weeks will be wrong?”
This Trading Pattern Is Bearish for ETH.
One data expert recently saw that the cryptocurrency exchange Bitfinex had seen a huge rise in the volume of Ethereum on the platform.
This appears to show that traders are taking short-term positions on ETH, with an objective of exiting their positions should it push any higher in the short-term.
He said “So Bitfinex now holds nearly double the USD balance of $ETH vs. $BTC. Two completely opposite trends this year. $1B of bitcoin outflow.”
