In recent weeks, Ethereum (ETH) 
$3,476 has experienced an 18% decline against Bitcoin (BTC) 
$105,391, reinforcing its weakness in the cryptocurrency market. However, crypto analyst Merlijn The Trader emphasizes that Ethereum’s true potential should not be overlooked. Based on historical data, he suggests that the altcoin king and the wider altcoin market could stage a significant comeback.
ETH/BTC Trading Pair at a Critical Support Zone
According to Merlijn The Trader, the ETH/BTC trading pair has recently shown signs of a pronounced downtrend, yet it is currently testing a vital support zone. Marked in green on his chart, this area has historically been a rebound point for Ethereum. Despite the short-term negative outlook, Merlijn The Trader believes that the altcoin king maintains strong momentum.
The current level of the ETH/BTC trading pair stands at 0.03347, indicating a 17% decline since December. However, history offers a promising perspective. During the 2021 bull market, the ratio dropped to 0.03, only to surge back to 0.077 over two months. During this time, ETH’s price surged by 111%, reaching $3,800. Merlijn The Trader believes that the current decline is a natural market cycle and could pave the way for a new rally for Ethereum.
Bitcoin’s Rise May Trigger Ethereum’s Surge
As Bitcoin crosses the $100,000 threshold, analysts suggest that Ethereum may also benefit from this upward trend. Thomas Fahrer, co-founder of Apollo, indicates that Bitcoin’s widespread adoption could indirectly elevate Ethereum’s price to $4,000. In this market cycle, analysts anticipate that Ethereum may follow Bitcoin’s lead, potentially resulting in a recovery for the altcoin market.
However, Ethereum faces its share of challenges. Recently, the altcoin king fell below the critical support level of $3,500, currently trading at $3,421. Additionally, the anticipated deflationary structure from Ethereum’s The Merge update has yet to yield the expected results.
Merlijn The Trader warns that those underestimating Ethereum’s current potential might miss significant opportunities. He stresses the importance for investors to carefully monitor the market without disregarding historical cycles.
