• The Ethereum/Bitcoin ratio currently stands at 0.068, a 3-month low after falling 6.78% between Jan. 20 and Jan. 25.
• ETH/BTC hit its highest ratio at 0.12 in the summer of 2017, but has since then dropped to lower lows.
• All eyes will now be on the anticipated Shanghai upgrade.
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has seen a significant decline in its ETH/BTC ratio. According to data from TradingView, the ratio currently stands at 0.068, a 3-month low after falling 6.78% between Jan. 20 and Jan. 25.
This is a significant drop for Ethereum, which had its highest ratio at 0.12 in the summer of 2017. Since then, the coin has experienced a steady decline, with traders and analysts now watching to see if the anticipated Shanghai upgrade will help restore its price.
The Shanghai upgrade is an upcoming hard fork of the Ethereum blockchain, which is expected to improve its scalability and reduce transaction fees. It was announced in December 2020 and is set to take place in the Shanghai-based mining pool in the first quarter of 2021.
The upgrade is based on the Ethereum Improvement Proposal (EIP) 1559, which will adjust the base fee of Ethereum transactions. This will be done by introducing a mechanism that dynamically adjusts the base fee according to the current demand and supply of the Ethereum network.
The upgrade has been highly anticipated by the Ethereum community, with some expecting it to help boost the cryptocurrency’s price and restore its ETH/BTC ratio. However, only time will tell if the upgrade will be successful and if it will have a positive impact on the price of Ethereum.
In the meantime, traders and investors will be keeping a close eye on the ETH/BTC ratio and the Ethereum blockchain in general. If the anticipated upgrade is successful, it could help Ethereum regain its previous highs and potentially push its ratio even higher.