On May 12, Ether’s (ETH) price dived to its two-month lowest level versus the price of Bitcoin (BTC). The reason behind the drop was the sell-off that took place in the crypto-verse on that particular day. As the sell-off intensified ETH continued plunging against Bitcoin.
ETH/BTC is Feeling the Headwinds’ Pressure
The past 24-hour data for the ETH/BTC pair shows that their exchange rate has experienced a 7.5% plunge. It was on May 11, when the ETH/BTC pair was recorded to be trading at 0.0768, which was a local high price.
As the pair hit the high price, it became obvious that a correction may soon take place. As the correction took place, a 13.75% drop was recorded for ETH versus Bitcoin.
The US Federal Reserve Grows Aggressive
In recent weeks, great aggression has been witnessed by the United States Federal Reserve. Their aggression has raised many concerns and the investment sector is expected to be impacted by such aggression.
In the investment sector, the investors, traders, and money managers are trying to deal with the matter proactively. They are trying whatever they can to ensure their portfolios are de-risked from such strong aggression.
Ether Takes the Hit
The stress being felt all over the cryptocurrency sector has shown no leniency towards Ether. The market capitalization of Ether has also taken a huge hit due to the recent headwinds that are gaining weight over time.
Ether currently trades at a price, which is 65% lesser than the peak price it managed to hit back in 2021. It was in the month of November in 2021 when Ether reached its peak price of $4,870. On the other hand, it was the same time around when Bitcoin hit its all-time high of over $69k per BTC.
ETH/BTC Pair May Become Bearish
The individual prices of Ether and Bitcoin are showing a very huge decline. Still, the ETH/BTC pair proved its persistence against the bearish trend. However, the situation seems to be undergoing a change, and the ETH/BTC may become bearish.
Due to the recent downfall, the wedge pattern of the pair has been broken. It suggests that the technical downside target of the pair would turn out to be lower than the low value that was recorded back on My 12.
The dominance of Bitcoin is at a Six-Month High
On May 12, as the price of the ETH/BTC pair plunged, it ended up increasing the dominance of Bitcoin against the altcoins. This means that the market dominance of Bitcoin is on one side and the dominance of the entire crypto-verse is on the other.
The Bitcoin dominance index shows that as of now, the dominance of Bitcoin in the crypto sector is almost 45%. It is the highest dominance Bitcoin has hit in the past 6-months.