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

CoinJié.com reported:
In recent weeks, the cryptocurrency market has been overall volatile. However, compared to Bitcoin and other similar assets, Ethereum’s performance remains weak.
For context, in the past day, Solana’s stock price has risen by 5%. Meanwhile, Ethereum has experienced a 2.38% decrease during the same period, making it the cryptocurrency with the largest decline among the top ten in terms of market capitalization.
Ethereum’s inherent price weakness is also evident in the ETH/BTC chart, which has been trending south since its peak in June. Speculation arose when the approval of Ethereum spot trading exchange-traded funds (ETFs) was expected to push the price of Ether above $3,800 per coin, with its value against Bitcoin reaching $0.05710.
However, since then, Ethereum has fallen by 33.5%, reaching a more than three-year low against Bitcoin. The trading price of the second-largest cryptocurrency by market capitalization is now $2,551 and 0.3796 BTC.
Ethereum’s surge in liquidation heatmap
At the same time, the bet on Ethereum’s price increase by the bulls has been quite disappointing. The continuous downward trend of this asset has led to a significant liquidation of positions in the past 24 hours.
Data shows that in the past day, almost one-third of cryptocurrency liquidations were in Ethereum trades. Over $77.28 million worth of Ethereum positions have been liquidated, with $61.54 million attributed to long traders.
It is worth noting that this is the highest liquidation amount for a single asset in the past 24 hours, with more closed trading positions than Bitcoin and Solana, which were liquidated for $58.27 million and $10.31 million, respectively.
Analysis reveals Ethereum’s next move
Previously, a notable analysis by Bitwise’s Chief Investment Officer Matt Hougan suggested that Ethereum’s storm might not be over yet. For instance, data from IntoTheBlock indicates that considering the congested supply zone, the path of least resistance for Ether might be downwards.
The data shows that Ethereum faces significant resistance in the range of $2,545 to $2,621, with nearly 3.2 million addresses buying the coin within this range. Therefore, the king of altcoins may face significant selling pressure in this price zone.


IntoTheBlock IOMAP data
However, CryptoQuant analyst ShayanBTC warns of a possible short squeeze. In a bearish market, speculators suggest that the estimated leverage ratio indicates an increasing trend of oversaturated and overleveraged short trades on Ethereum.
As a result, 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 to around $2,700, which is the 100-day moving average, significantly increasing the number of short liquidations.