Ethereum price has suffered a downfall of 10% on Sunday, causing the entire cryptocurrency market to be roughed up this week. Also, in the broader market turmoil that has gripped cryptocurrencies and global stock indices too. Long-term investors who hope to earn more than they would have if they had invested their money in stocks are now disappointed with Ethereum, which trades at about $1,515 per coin, much less than what they would have made if they had put their money in the stock market.

Key-Takeaways:

• Ethereum price has plunged further still, 10%, as part of the broader crypto market turmoil, and its Bitcoin price has hit its level since February 2020.
• After a period of decline that has lasted for three consecutive years and which includes a collapse of the ETH/BTC ratio below the critical 0.02 level.
• Hong Kong’s Hang Seng index plunged over 12% and Japan’s Nikkei over 7% as global stock markets plunged at the same time.
• ETH’s standing is also weakening as now Tether (USDT) is within striking distance of becoming the second largest coin by market cap, as USDT overtakes Ethereum in the weekly chart.

ETH/BTC Ratio Hits Multi-Year Low

Ethereum price against Bitcoin has collapsed to below the important 0.02 level, something that is particularly concerning. Binance was doing this Monday intraday low of the ETH/BTC ratio at 0.01965. As measured by the ratio of Ethereum’s price to Bitcoin, this is the lowest level of Ethereum to Bitcoin since February 2020, which represents a deterioration in the altcoin’s relative strength.

This year, the flagship altcoin has crumbled by 44 percent against the top cryptocurrency. This is the third year in a row that Dash’s decline against Bitcoin has been three consecutive years. On top of that, Ethereum has lost 79 percent from its December 2021 peak, which coincided with the height of excitement over DeFi and NFTs.

Market analysts now wait for further potential ETH decline as Ethereum falls below critical support levels. The September 2019 low is marked by the next significant support level at 0.01615 BTC. That would need to be another 18 percent discount from where it is today against Bitcoin. Negative sentiment will eventually reach a point where the pre-ICO low of March 2017 (0.0128 BTC) comes into play.

Global Market Selloff within Crypto Pain

Coincidentally, the crypto drama is happening in the midst of other worldwide market panic. International stock markets fell Wednesday on grounds of tariff-related concerns. That sent Hong Kong’s Hang Seng Index, Japan’s Nikkei 225, and major European and US markets sharply lower by more than 12%, over 7%, and up to 6%, respectively. It seems like the instability recognizes this global market has increased anxiety on prices of cryptocurrency.

A notable other development is if stablecoin Tether (USDT) overtakes Ethereum in market capitalization. At present, Ethereum has a market cap amounting to approximately $185 billion, while Tether’s market cap stands at $144 billion. This is the gap that narrows, which indicates the collapse of Ethereum in the crypto hierarchy.

Long-Term Investors Face Disappointing Returns

For Ethereum supporters, the biggest hurt is watching their ETH buy purchase price peak in January 2018, during an ICO fueled bull market, and never having made even a single cent on their ETH purchase price. This is a stark contrast to the Ethereum that previously carried an image of being a revolutionary blockchain technology with a great potential for capital appreciation.

Meanwhile, network transaction fees on Ethereum are reported to have crashed 59% recently. That would suggest a big decline in demand for lie on the Ethereum network. The activity on a network often correlates with reduced investor interest and a lower utility value.

Black Monday has made the overall crypto market outlook look up for grabs. Ethereum’s poor performance compared to Bitcoin and the market at large brings concern to its future path. Now, the problems it’s struggling to overcome are serious challenges to regaining investor confidence.

Conclusion: Ethereum Price

In the face of these turbulent times for the crypto markets, investors would do well to be circumspect and realistic. Support levels from history would be potential targets for stabilization, but for the short term, the external economic factors are and will continue to influence cryptocurrency valuations.