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Ethereum, the second-largest cryptocurrency by market cap, has been under immense pressure recently. Over the last six weeks, it has dropped 18% against Bitcoin. However, crypto analyst Merlijn argues that it’s too early to write off Ethereum’s potential, as history shows it could make a strong comeback.
ETH/BTC Pair Shows Key Support Zone
According to crypto trader Merlijin The Trader, the ETH/BTC chart reveals a consistent decline over the last six weeks, but it’s now testing a critical support zone. This area, marked in green on Merlijn’s chart, represents a level that has historically acted as a launchpad for Ethereum recoveries.
While the short-term trend may look unfavorable, Merlijn highlights Ethereum’s undeniable momentum.
However, the current dip in the ETH/BTC pair is no exception. Many analysts believe that this correction is part of a natural market cycle and could set the stage for Ethereum’s next rally.
As of now, the ETH/BTC ratio stands at 0.03347, marking a 17% decline since December. Yet, history offers a reason for optimism. In the 2021 bull market, the ratio dipped to a similar level of 0.03 before skyrocketing to 0.077 within two months. This surge also saw Ethereum’s price jump by 111%, reaching $3,800.
Bitcoin’s Rise Could Lift Ethereum
Bitcoin’s recent rally to $100,000 has dominated headlines, but analysts believe Ethereum might benefit as well. Apollo co-founder Thomas Fahrer speculated that broader Bitcoin adoption could indirectly push Ethereum’s price higher, possibly to $4,000. If such momentum continues, Ethereum could follow Bitcoin’s lead in the current market cycle.
Ethereum Price Analysis
However, Ethereum still faces hurdles. It recently dropped below the key $3,500 support level and is now trading at $3,421. On top of that, the much-anticipated Ethereum Merge, which aimed to make Ether deflationary, hasn’t delivered as expected.
Therefore, Merlijn’s message is clear, underestimating Ethereum now could lead to missed opportunities.