What will happen next as Ethereum drops to a 42month low against Bitcoin

CoinWorld.com reported:
In recent weeks, the cryptocurrency market has been volatile overall. However, compared to Bitcoin and other similar assets, Ethereum’s performance remains poor.
For context, in the past day, the price of Solana has risen by 5%. Meanwhile, Ethereum has dropped by 2.38% in the same time period, making it the cryptocurrency with the largest decline among the top ten in terms of market capitalization.
The inherent weakness in Ethereum’s price is also evident in the ETH/BTC chart, which has been trending downward since its peak in June. Speculation arose from the approval of an Ethereum spot trading exchange-traded fund, which was expected to raise the price of Ether to over $3,800 per coin, with its value against Bitcoin reaching $0.05710.
However, since then, Ethereum has fallen by 33.5%, reaching a low point in over three years compared to Bitcoin. The trading price for the second-largest cryptocurrency by market capitalization is $2,551 and 0.3796 BTC.
Etherium’s surge in liquidations
At the same time, bulls betting on an increase in Ethereum’s price are quite disappointed. The continuous downward trend of this asset has resulted in a significant number of positions being liquidated in the past 24 hours.
Data shows that in the past day, nearly one-third of cryptocurrency liquidations were from Ethereum traders. Over $77.28 million worth of Ethereum positions has been liquidated, with $61.54 million attributed to long traders.
It is worth noting that this is the highest amount of liquidations for a single asset in the past 24 hours, with more closed trading positions than Bitcoin and Solana. They have liquidated $58.27 million and $10.31 million worth of open trades, respectively.
Analysis indicates Ethereum’s next move
Previously, an insightful analysis by Bitwise Chief Information Officer Matt Hougan suggested that the storm for Ethereum may not be over yet. For example, data from IntoTheBlock suggests that considering the crowded supply zone, the path of least resistance for Ether could be downwards.
Data shows that Ethereum faces significant resistance in the range of $2,545 to $2,621, with nearly 3.2 million addresses purchasing the coin. As a result, the king of altcoins may face significant selling pressure in this price range.


IntoTheBlock IOMAP data
However, CryptoQuant analyst ShayanBTC warns that a short squeeze may occur. In a mailing to market speculators, estimated leverage ratios indicate an increasing trend of oversaturated and overleveraged short trades on Ethereum.
Therefore, ShayanBTC points out that Ethereum’s price may surge to alleviate the overheated short trades. The analyst’s target is to push the resistance level up to around $2,700, the 100-day moving average, which would greatly increase short liquidations.