The ETH/BTC ratio is dangerously approaching the critical level that triggered a spectacular rise of Ethereum in 2019. Technical indicators and Vitalik Buterin’s proposals fuel hopes for a major reversal.

Ethereum approaches the explosive threshold of 2019

Ethereum is currently showing a notable weakness against bitcoin, with an ETH/BTC pair trading around 0.019. 

This configuration eerily recalls the September 2019 scenario, when ETH hit 0.016 BTC before starting a nearly 450% surge over the next twelve months.

The similarities between the two periods are striking. The Relative Strength Index (RSI) shows a comparable oversold level, while the price stubbornly remains below key moving averages. 

In 2019, ETH/BTC fell by more than 90% following the ICO collapse. Today, the pair shows a decline of more than 80% since its 2021 peak.

Chartist Jimie notes that the “bearish parabola” that contained ETH since December 2021 now shows signs of exhaustion. A break of this resistance could pave the way for a significant rebound, even though the risk of testing the 0.016 BTC level remains.

A battle between optimism and skepticism

Faced with these challenges, Vitalik Buterin, co-founder of Ethereum, unveiled an ambitious proposal. He plans to simplify Ethereum’s architecture and establish new standards to improve its speed and maintainability. 

The goal: to match Bitcoin’s simplicity within five years. This announcement was described as “the most optimistic thing for ETH” by several analysts.

Chart analysis reveals an attempt to break out of a “bearish parabola” active since December 2021. 

Chartist Jimie observes signs of exhaustion of this downward trend. “We could see the end of this bearish parabola,” he states, while warning that failure could lead to a drop towards 0.016 BTC.

However, critical voices are rising. Adam Back, pioneer of Bitcoin’s proof of work, remains skeptical. 

He believes Buterin overlooks fundamental flaws by focusing on superficial simplifications.

At this point, it’s best to dump ETH before it hits zero and buy Bitcoin.

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Could history repeat itself? The coming weeks will be crucial to determine if Ethereum can replicate its 2019 feat. Investors are closely watching this psychological level, aware that it could mark a decisive turning point for the world’s second-largest crypto.