Ethereum

2024

Change

<blockquote>
 On Sept. 10, ITC Crypto founder and CEO Benjamin Cowen identified a wedge chart pattern this cycle similar to previous cycles in 2019 but several orders of magnitude larger.
</blockquote>
He said that the ETH/BTC structure bottomed after an interest rate cut in 2019, and it appears to be mirroring that pattern now with an impending rate cut due next week.
<blockquote class="twitter-tweet">
 The wedge that <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#ETH</a> formed this cycle had higher lows that are ~10x of the 2019 wedge.
 In 2019, <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#ETH</a> fell back into its wedge right before the 1st rate cut, just like 2024.
 After the first rate cut in 2019, ETH fell below its wedge, and then <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#ETH</a> / <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#BTC</a> finally bottomed. <a href="https://t.co/lAcJi8TBHX" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/lAcJi8TBHX</a>
 — Benjamin Cowen (@intocryptoverse) <a href="https://twitter.com/intocryptoverse/status/1833330119185698833?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">September 10, 2024</a>
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Meanwhile, MN Consultancy founder Michaël van de Poppe <a href="https://x.com/CryptoMichNL/status/1833082929381261403" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">identified</a> a bullish divergence which was still valid with a recent higher low on the ETH chart. This could lead to a break of the downward trend, he added.
<blockquote>
 “The downtrend of the past months is likely going to be broken upwards. That could be a significant push for the entire market.”
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ETH prices are currently trading up 2.6% on the day at $2,345 at the time of writing. The asset tanked to a low of just below $2,200 on Sept. 7, which was only marginally higher than its Aug. 5 drop, suggesting that it bounced off strong support twice.
However, ETH has underperformed its big brother, dropping 46% from its 2024 high in mid-March.
<h2 id="fee-woes-continue">Fee Woes Continue</h2>
There are several reasons why Ethereum has <a href="https://cryptopotato.com/these-factors-have-driven-ethereums-underperformance-against-bitcoin-since-the-merge/" data-wpel-link="internal" rel="noopener noreferrer nofollow">performed so badly</a>, and one is the rising concern over diminishing network fees and an inflationary supply issuance.
It has been suggested that Coinbase’s support for EIP-4844 was the catalyst for the flip to inflationary issuance and the decline in fees. Meanwhile, the company’s layer-2 network, Base, has seen a ‘parasitic’ surge in users (primarily meme coin minters) and an increase in network revenue.
<blockquote class="twitter-tweet">
 The Ethereum community allowed <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">@Coinbase</a>, a private company, to sway protocol development to favor their own for-profit business.
 Now <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">@Coinbase</a> has parasitically stolen all of ETH’s users and fees via <a href="https://twitter.com/base?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">@base</a>, and exports all of it onto the community as inflation. <a href="https://t.co/WB58ME9vXb" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/WB58ME9vXb</a>
 — Pledditor (@Pledditor) <a href="https://twitter.com/Pledditor/status/1833148080314568735?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">September 9, 2024</a>
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<h2 id="good-new-coming-soon">Good New Coming Soon?</h2>
On Sept. 9, on-chain analytics platform Santiment <a href="https://cryptopotato.com/important-ethereum-metric-hits-a-4-month-high-eth-price-rally-soon/" data-wpel-link="internal" rel="noopener noreferrer nofollow">reported</a> that Ethereum has hit a four-month high in terms of network growth.
More than 126,000 new wallets were created in one day, which is “indicative of rising network utility,” it stated. It is the highest single day for new Ethereum wallets since May 5.
Moreover, ETH prices have ticked up 7% since the weekend as analysts speculate over a potential recovery.
<blockquote class="twitter-tweet">
 Ethereum has just hit a 4-month high in network growth, on a day (Sunday) that is traditionally the least active of the week. 126,210 new wallets created is indicative of rising network utility and anticipated price bounces from the $2,200-$2,300 level. <a href="https://t.co/zQaKbBdznK" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/zQaKbBdznK</a>
 — Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1833004546215530860?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">September 9, 2024</a>
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Santiment analysts remarked on the correlation between network growth and price action, stating:
<blockquote>
 “Generally, whatever the mid-term trend is for prices, major rises in network activity are more indicative of a price reversal. This rise in network growth is more rare when prices are dropping.”
</blockquote>
The post <a href="https://cryptopotato.com/eth-btc-trading-pair-highlights-bitcoins-dominance-but-will-the-fed-rate-cut-change-the-trend/" rel="noopener noreferrer nofollow">ETH/BTC Trading Pair Highlights Bitcoin’s Dominance, But Will the Fed Rate Cut Change the Trend?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

ETH/BTC Trading Pair Highlights Bitcoin’s Dominance, But Will the Fed Rate Cut Change the Trend?

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