Analyst issues Ethereum "falling knife" warning, ETH/BTC exchange rate may continue to plummet

According to Cointelegraph, the ETH/BTC exchange rate fell by more than 1.5% today, reaching a low of 0.0224 since May 2020. Analysts predict that it may further decline in the coming weeks. This drop is a continuation of the long-term downtrend since June 2017 when it hit a historical high of 0.156, with an accumulated decline exceeding 85%, highlighting Ethereum's continued weakness against Bitcoin.

In the two-week cycle ETH/BTC chart, the Relative Strength Index (RSI), which measures overbought and oversold asset momentum, has fallen to a historic low of 23.32. Usually when RSI falls below 30 it enters an oversold area which could trigger price rebounding; however Ethereum's RSI continues to probe lower two months after entering an oversold state indicating its downward trend has not yet stabilized but instead appears to be accelerating. Cryptocurrency analyst Alessandro Ottaviani refers this phenomenon as "falling knife" scenario where asset prices plummet rapidly deterring bottom buyers from stepping in and attempts at catching falling knives might lead to further losses.

To confirm trend reversal one needs to pay attention on reclaiming key resistance levels; traders need observe stabilization of RSI and breakthroughs at key resistance levels ideally ETH/BTC should start rebounding from position at around .022 BTC where there was once triggered a bounce back up by about three hundred percent in December twenty-twenty if such bounce back occurs this trading pair might attack near point zero three eight BTC or thirty-eight point two percent Fibonacci retracement level coinciding with fifty week exponential moving average before then technical analysis suggests that ETH/BTC may continue its "falling knife" trajectory next potential support lies within historical range between point zero two and point zero one six still leaving room for approximately thirty percent fall from current exchange rate

The weakness in ETH/BTC exchange rate is not only due to technical factors. Currently, Ethereum is facing strong challenges from competitive Layer 1 public chains such as Solana and Sui, causing market attention to be dispersed. In addition, Bitcoin's hedging attribute as "digital gold" continues to attract capital inflow amid macro uncertainties while Ethereum has yet fully realized the expected ecological explosion after transitioning to Proof of Stake (PoS), resulting in increased pressure on ETH/BTC under the effect of capital rotation.