Ethereum’s native token, Ether (ETH), plunged to its lowest level in almost two months against Bitcoin (BTC) as a crypto market sell-off intensified on May 12.
Macro headwinds catch up to ETH/BTC finally
The ETH/BTC trading pair fell by 7.5% to 0.0663 in the past 24 hours. The downside move came as a part of a correction that began May 11 when the pair traded at the local high of 0.0768. That pushed Ether down against BTC by up to 13.75%.
Cryptocurrencies have come under stress in recent weeks alongside stock markets. Notably, money managers, traders and investors show signs of “de-risking” their portfolios amid growing concerns over an increasingly hawkish United States Federal Reserve.
Ether, the second-largest cryptocurrency by market capitalization, has also been hit by the same macro headwinds, now trading 65% lower than its record high of around $4,870 in November 2021. Similarly, Bitcoin is down 63% from its all-time high of $69,000 in the same period.
As a result of Ether’s slightly limited decline compared to Bitcoin’s, ETH/BTC has shown resilience despite the market downturn in 2022. Nonetheless, the pair now shows signs of catching up to the bearish trend, suggesting more pain ahead.
Rising wedge breakdown in play
ETH/BTC’s latest decline has had it break below its prevailing rising wedge pattern, suggesting the pair’s technical downside target could be much lower than May 12’s local lows.
That’s because rising wedges are bearish reversal patterns that typically send the price lower by as much as…