Analysis: ETH/BTC is currently attempting to break above the "bearish parabolic trendline" resistance, with a technical structure highly reminiscent of the 2019 peak

BlockBeats News, May 4th, according to Cointelegraph, the ETH to BTC exchange rate is approaching a key level of 0.016 — a level that triggered a subsequent 450% surge in the ETH/BTC pair back in September 2019. The current ETH/BTC exchange rate (about 0.019 BTC) exhibits a technical structure similar to the 2019 high, with the Relative Strength Index (RSI) in oversold territory and the exchange rate persistently below key moving averages. Ethereum dropped by 90% before 2019 due to the burst of the ICO bubble, and it has currently retraced 80% from its 2021 peak.

Chart analyst Jimie pointed out that ETH/BTC is attempting to break through the "bearish parabolic" resistance formed since December 2021. If the breakout fails, the exchange rate may decline to 0.016 BTC (2019 low), but if successful, it could initiate a new uptrend. Early Bitcoin developer Adam Back criticized the fundamental design flaws in Ethereum's account system, emphasizing that the transition to Proof of Stake (PoS) further concentrates power among large holders. He straightforwardly suggested "selling ETH for BTC before it's too late."

The recent Ethereum price decline is mainly driven by market skepticism towards Ethereum's shift to Proof of Stake (PoS), the rise of competing blockchains, and the growing dominance of Bitcoin as an institutional asset. To counter these challenges, Ethereum co-founder Vitalik Buterin recently proposed a new protocol architecture with a five-year plan to make Ethereum reach Bitcoin-level simplicity and maintainability. Analysts believe this proposal is a significant positive development for ETH.