The relative-strength index on the ratio dipped to oversold today.
The ETHBTC ratio is slumping to the lowest in over two years as Ethereum’s native currency continues to underperform Bitcoin on expectations the spot BTC ETF is about to be approved.
ETHBTC dropped to 0.048 on Tuesday, the lowest since May 2021. The ratio plunged past 0.05, which had previously proven to be a key technical support level.
BTC is up 3.5% in the past seven days, while ETH has declined 4.5%.
Bitcoin is overperforming Ether as traders rush to buy the world’s largest cryptocurrency by market capitalization on speculation the digital asset will further rally if an exchange-traded fund linked to its spot price us approved in the U.S. Analysts forecast the Securities and Exchange Commission will approve a spot Bitcoin ETF between today and tomorrow.
Unlike with Bitcoin futures contracts or futures-based ETFs, spot ETF providers will be required to buy and hold Bitcoin equal to the funds’ underlying assets, which would increase demand for BTC.
While all eyes are on the Bitcoin spot ETF, Ethereum also has potential drivers including its own spot ETF approval coming up in May, its “Dencun” upgrade and the asset turning deflationary amid increased activity.
With the relative-strength index on the ratio dipping to oversold at 27.9 today, some traders will start betting on a rebound.
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