Ethereum Price Prediction: ETH/BTC ratio falls nearly 6%, may enter the second wave of the pump phase

Ethereum (ETH) has pulled back from its short-term high, currently reported at $3,586 during the Asian afternoon session today (24th), with the ETH/BTC ratio declining by 5.8% within 60 hours. The market anticipates that if the volume and social mention decrease for the remainder of this week, the likelihood of entering the second bullish phase may increase.

Santiment stated on X: "The price ratio of ETH to BTC has fallen by 5.8% in the past 60 hours. This trend is similar to the pattern seen in early May, when a local peak formed after a surge in volume driven by FOMO."

The report further points out that "if the trading volume and social mentions decline during the remaining time this week, then due to the impatience of retail investors and profit-taking sell-offs, the likelihood of re-entering the second bullish phase is higher."

(Source: Santiment)

Ethereum financing rate

From the market sentiment perspective, the recent pump of Ethereum is attributed to the continuous increase in speculative interest, which is reflected in the rising financing rates across all major exchanges. Funds have turned positive and continue to climb, indicating that bullish positions are becoming increasingly dominant as traders chase breakthroughs. However, it is worth noting that despite the rise in funding rates, there is still a significant gap compared to the extremely high levels seen during past major market peaks.

During the previous cycle's peak, the volume surged dramatically, reaching levels that typically precede significant pullbacks or bullish squeezes. Currently, the volume remains relatively moderate, indicating that while market sentiment is turning bullish, it has not yet reached a frenzied stage. As long as the pace of interest rate increases is not rapid, this provides some breathing room for further rises in Ethereum. Traders should still closely monitor volume dynamics, as a sudden spike in volume could be an early warning of market overheating.

(Source: CryptoQuant)

Ethereum Price Analysis

Ethereum RSI has peaked above 78, indicating that this move is severely overbought and is starting to cool down. The key level to watch is the $3,300 region, which was previously a breakout area and could become a support level if the price pulls back. As long as ETH stays above this level, the macro structure remains bullish.

However, the asset is slightly stagnating below the $4,000 resistance level, with the latest daily chart showing upper wicks, indicating selling pressure. If the bulls fail to break strongly above $3,800, we may see a further pullback to the $3,300 range, which would be a healthy retest before continuing the bullish momentum. On the upside, the previous high of $4,107 remains the next major target, but a clear break and close above $3,800 is needed to confirm this trend.

(Source: Trading View)