Ethereum’s Momentum Stalls: ETH Lags Behind Bitcoin as $5,000 Target is Put On Hold!

Despite Bitcoin (BTC) reaching new all-time highs, Ethereum (ETH) is showing distinct signs of underperformance, trading sideways over the past few sessions. Technical indicators, most notably the flattening and falling Chaikin Money Flow (CMF) and a declining ETH/BTC ratio, confirm that Ethereum is losing ground to the market leader, raising concerns that the altcoin may be more vulnerable to downward pressure in the short term.

📉 Key Indicators Confirming Weakness Against BTC

Ethereum's inability to follow Bitcoin's record-breaking rally suggests a decisive shift in market favor, which is confirmed by two key technical indicators: Declining ETH/BTC Ratio: The ratio measuring Ethereum's strength relative to Bitcoin has been trending lower, currently sitting at 0.036. When this ratio falls, it signals that ETH is underperforming BTC, meaning Bitcoin’s recent surge is insufficient to lift Ethereum. This leaves ETH vulnerable to sideways movement or a correction.Weakening Capital Inflows (CMF): The Chaikin Money Flow (CMF) indicator on the daily chart has flattened and begun trending downward. Since CMF measures the flow of money into and out of an asset, this pattern signals a slowdown in capital inflows and weakening buying pressure. This lack of demand further delays the likelihood of a surge toward the psychological $5,000 target.

💰 Price Outlook: Indecision and Critical Levels

The current sideways trend, paired with muted momentum, reflects indecision among traders, with neither buyers nor sellers in firm control. The path forward depends on ETH breaking out of this consolidation: Downside Risk: If downward pressure strengthens, the price could plummet toward $4,211, which would signify a larger correction.Upside Hurdle: For Ethereum to regain bullish momentum and attempt a rally toward its all-time high of $4,957, it must first breach the immediate resistance level at $4,766. Failure to clear this resistance will likely prolong the sideways or downward trend.

📌 Conclusion: The Altcoin Must Catch Up

Ethereum’s momentum has stalled at a critical time when Bitcoin is demonstrating peak bullishness. The technical divergence, highlighted by the weakening ETH/BTC ratio and reduced capital inflows, suggests that the market is currently favoring BTC. The dream of reaching $5,000 is on hold until renewed demand can push ETH above key resistance levels and reverse its relative underperformance against Bitcoin.

🔐 Disclaimer

This information is a summary of technical analysis and commentary from a BeInCrypto article and is for informational purposes only. It does not constitute financial or investment advice. Ethereum is a volatile cryptocurrency, and the observed technical signals are not guarantees of future performance. You must always conduct your own thorough research (DYOR) and consult with a professional financial advisor before making any investment decisions.