The support level of ether has been broken since November 2021 on the ETH BTC chart. Since its peak in December, ether, the world's second-largest coin by market cap, has fallen by more than 20% againstBitcoin.
Ahead of The Merge, Ethereum has fallen to its lowest level this year compared toBitcoin. After breaking support of 0.065, the chart shows how the price of ether has fallen to just 0.06 BTC per coin.
The decline may indicate a trepidation for what will happen to the chain after it moves to proof of stake, but it has already recovered 4% from its intraday low. Participation in the Ethereum network is down with many key KPIs showing bearish signals, according to some investors.
TaschaLabs from Soundwise went as far as to say that Eth will outperform newer L 1 s that survive winter? The data in our assets section can be viewed by members of the CryptoSlate Edge to verify the drop in usage of the ethereum, including an overwhelmingly bearish indicator in the futures markets.
Some investors are spooked by the uncertainty due to global market conditions and the imminent merger. Over 60% of investors hold more than 18 months, with just 53% of the holders of Ethereum in profit at the current price. The decline in profitable trades highlights the depth of the downtrend in the market for cryptocurrencies.
On Thursday, Edge members saw a peak in positive sentiment towardsEthereum on social media.
In volatile market conditions, having access to multiple sources of information and value metrics is an essential tool for investors targeting short to medium-term time horizons. The current sentiment forEthereum does not match its price action.
Since March, the dominance of ether has fallen to its lowest level since March, while the dominance ofBitcoin has gone up 10% since May. In May, the dominance of Binance Coin went up 20% to support the debate about Ethereum's position as the most prominent competitor toBitcoin. In a similar timeframe, the price of Binance Coin is up 15% againstBitcoin.
Apprehension around The Merge is clear. The upgrade of the digital ledger is a significant change in the history of the coin and has been anticipated for a long time. The biggest test for ether is going to be the layer 1 test, and all eyes are on how layer 1 will be fearful once the mainnet goes live.