Key Takeaways:
Ether traders are bracing for more price volatility as the ETH/BTC trading pair has plunged to its lowest point in three years. Galaxy Digital’s head of research Alex Thorn noted that the prominent trading pair for Ether hit a multi-year low of 0.03496.
ETH/USD Pair Hit 3-Year Low as Bitcoin Surges Amid a Trump Victory
Meanwhile, crypto analyst Zach Voell believes that there is “no reversal in sight” for the ETH/BTC trading pair. He also added that the election shouldn’t distract investors from the fact that ETH/BTC continues to plummet to new lows. Crypto commentator Colin Talks Crypto speculated that ETH/BTC is poised to drop even more.
As per TradingView data, the Ether to Bitcoin trading pair is at a ratio of approximately 0.035, which is the lowest level it has been at since March 2021.
However, there is reason to be optimistic as the last time the trading pair was at this level, it did not remain there, instead, the ratio surged to 0.077. This also resulted in the price of Ether (ETH), the second-largest cryptocurrency by market cap, surging by 120% to trade at $3,928.
Crypto commentator, Benaiah wrote in an X post that the “coming pump” for Ether will be “epic”.
However, with the US Presidential election tipping in favor of Trump, most traders are anticipating an outsized increase in the price of Bitcoin before the end of the year. This would lower the ETH/BTC ratio even further if ETH won’t be able to post similar gains.
Ether Needs to Outperform Bitcoin’s Price Action to Make a Comeback
For the ETH/BTC ratio to rise, the price action of Ethereum will need to start outperforming that of Bitcoin.
CryptoQuant contributor Amr Taha pointed out last day that 82,000 ETH, worth approximately $200.49 million, had gone into derivative exchanges, signaling a potential downturn or increased volatility in the price of Ether.
In an X post, Taha stated that the latest spike in ETH netflow could signal another period of heightened market activity, potentially leading to a price correction or a sharp move based on trader positioning.
Many analysts are skeptical of how the presidential election will affect the overall crypto market.
Recently, Bitfinex analysts pointed out that a massive spike in volatility could still be expected following the conclusion of the election. They believe this may fuel big moves in the market or be a warning sign for a much deeper correction for Bitcoin on the lower timeframes.
Meanwhile, Bitcoin (BTC) surged past $75,000 on Tuesday as the market sentiment and border economic expectations largely point to a second Trump presidency. The move to the new all-time high can be described as a direct response to the increasing momentum behind Trump’s campaign. The market is interpreting his victory as a signal for greater economic stability, reduced government intervention, and a return to more business-friendly policies.
Bitcoin’s surge to its new all-time high is not just a coincidence, but a reflection of investors’ confidence in a future where monetary policy could be more predictable and aligned with market-driven principles.
At the time of writing, Ether (ETH) is trading at $2,594 – up 6.8% in the last 24 hours. Meanwhile, Bitcoin (BTC) is changing hands at $74,515 – up 8.6% since yesterday.
Read More: Bitcoin Skyrockets To $75,000 As Trump Victory On The Cards
