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Ethereum’s declining highs compared to Bitcoin suggest potential further declines in April.
The value of Ethereum’s Ether (ETH) token has pulled back from its recovery trajectory against Bitcoin (BTC), forming a sequence of lower highs throughout April.
ETH price faces potential further declines against Bitcoin
As of April 24, the ETH/BTC trading pair had decreased by approximately 5.5% from its recent peak of 0.0709 BTC recorded six days prior. During the same timeframe, Ether experienced a nearly 15% decline, while Bitcoin fell by 11.25% in U.S. dollar terms.
ETH/BTC daily price chart. Source: TradingView
Currently, ETH remains above its 50-day exponential moving average (50-day EMA; the red wave) situated around 0.0672 BTC. However, if the fractal pattern from March 2023 is indicative, Ethereum’s price may sharply decline below this support level.
The ETH/BTC pair experienced a downward trend in March after testing the 200-day EMA (the blue wave), subsequently breaking below its 50-day EMA.
If the fractal pattern unfolds similarly in April, the downside target could be 0.0627 BTC by the end of the month, roughly 7% lower than current levels, which also served as significant support in March and April.
This target aligns with Ether’s long-term ascending trendline support — the “buy zone” illustrated in the chart below — which has been limiting its bearish movements since June 2022.
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ETH/BTC three-day price chart. Source: TradingView
Weekly Ethereum institutional inflows surpass BTC
Notably, Ethereum’s underperformance relative to Bitcoin contrasts with institutional flows over the past week.
Ethereum funds garnered $17 million in inflows for the week ending April 21, while Bitcoin experienced an outflow of $53.1 million, according to the latest report from CoinShares.
Fund flow into crypto funds. Source: CoinShares
“These inflows indicate a growing confidence among investors following the successful execution of the Shapella upgrade,” stated James Butterfill, head of research at CoinShares, adding that these inflows “originated solely from Europe.”
Related: Ethereum up 20% in April while Markets Pro sees 379% gain in one day
Regarding Bitcoin, the outflow commenced around April 14 when the coin reached $30,000, a key psychological resistance level. Butterfill noted that Bitcoin’s decline to below $27,500 was a result of profit-taking in the absence of macroeconomic catalysts.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any decisions.
