- The price of ETH is down nearly 40% against BTC.
- Technical flag suggests that ETH’s price will continue to fall.
- Investor funds flow in for ETH after an 11-week slump.
Since December 2021, the price of Ethereum (ETH) is down nearly 40% against the market leader, Bitcoin (BTC). Now, it looks as if even more downfall is on the horizon for the largest altcoin by market cap in the coming weeks when looking at a classic technical indicator.
The ETH/BTC chart has been forming a bear flag since early June 2022 on the 3-day timeframe. According to this bear flag, ETH/BTC has been eyeing a breakdown similar to its previous breakdown with its profit target sitting at around 0.0439, which is down almost 20% from the current price.
Despite the bearish setup for ETH/BTC, the number of investor funds continues to flow which may be indicative of a potential recovery. In a recent report by CoinShares, ETH funds amassed $7.6 million in the last week.
The report noted, “The inflows suggest a modest turnaround in sentiment, having endured 11 consecutive weeks of outflows that brought 2022 outflows to a peak of $460 million,” and added that “This improvement in sentiment may be due to the increasing probability of the Merge, where Ethereum moves from proof-of-work to proof-of-stake, happening later this year.”
At the time of writing, the price of ETH is at $1.071.78 after a 24-hour rise in its price of around 1.32%. On the other hand, BTC’s price experienced a 0.60% rise to take its price to $19,774.62.