Ethereum's Deep Value

Deep Value Territory? ETH doomer boomers are out in full force after the ETH/BTC ratio took a turn for the worse, breaking below the key support at 0.05 to threaten 2024 lows. What happened in markets this week?

Alts found themselves in decline against Bitcoin on the week as BTC dominance rose by 2.2% to commence the second quarter, adding to Ethereum's problems, whose relative valuation against BTC had already slid throughout the majority of March.

Downward pressure on the ratio has been largely attributed to the falling odds of spot ETH ETF approval, which continued to tank despite the hopes of many that the SEC’s efforts to solicit public comments on three applications this week marked a welcome departure from the prior lack of communication that has led many analysts to assume denial is imminent come May.

Given the overwhelming amount of pessimism on ETH’s spot ETF approval odds, it is certainly possible that the denial scenario has already been priced in.

Some see deep value at the currently depressed levels and have no problem expressing their bullishness on ETH at a time when its L2 ecosystem is flourishing, enjoying massive increases to active users and total transactions processed thanks to tailwinds from data cost reductions.

While the prices of TradFi indices have ascended practically uninterrupted for the past 5 months, the broad market S&P 500 reversed by over 2% mid-day Thursday and posted the largest single day decline in 6 months.