Ethereum has experienced a significant drop of over 30% in the last 30 days, leading to its performance against Bitcoin reaching its lowest point since January 2021.

With increasing selling pressure, Ethereum faces the risk of further decline as key technical indicators signal a prolonged bearish trend.

The price of Ethereum has plummeted to levels not seen since December 2023, currently trading at $2,089. This decline has also resulted in the ETH/BTC ratio hitting a 4-year low, standing at 0.02 as of the latest data.

The ETH/BTC ratio reflects the relationship between Ethereum’s and Bitcoin’s prices, indicating whether Ethereum is outperforming or underperforming relative to Bitcoin. The recent decrease in the ratio signifies that Ethereum is currently lagging behind in the market.

Alongside broader bearish market trends, the increase in Ethereum’s circulating supply, driven by a reduced burn rate, has further added downward pressure on its price. Approximately 66,748.91 ETH coins worth over $140 million have entered circulation in the past month, contributing to the excess supply available for purchase.

As Ethereum trades below the lower trend line of its long-term descending parallel channel, there is a heightened risk of continued price drops in the near future. If the current trend persists, Ethereum's price could potentially fall below $2,000 and reach $1,922. Alternatively, a resurgence in demand for the altcoin could lead to a price rally towards $2,223.