Ether’s ( ETH ) price continues to struggle , particularly against Bitcoin ( BTC ), threatening more potential downside for the world’s second-largest cryptocurrency.

With Bitcoin dominance up to 58%, could this be the local bottom for ETH price, or will it keep losing market share against BTC?

ETH/BTC hits new 40-month lows

Ether’s price against Bitcoin has hit a three-and-a-half-year low last seen in 2021.

This could threaten more downside pressure for Ether, according to Alex Thorn, the head of research at Galaxy, who wrote in a Sept. 15 X post:

“ETH/BTC just traded on a 0.03 handle for the first time in 3.5 years (Apr. 2021). -53% since the Merge in Sept. 2022. What stops this train?”
Ethereum falls to new 40-month low vs. Bitcoin — Bottom or more pain ahead? image 0

BTC/USD downtrend. Source: Alex Thron

Others also believe that Ether could be set for a downtrend. Popular investor and mathematician Fred Krueger noted that ETH is on the “edge of collapse” against Bitcoin.

Krueger added that not all exchange-traded funds (ETFs) “are created equal,” sharing the below image about Bitcoin and Ether ETF inflows, in a Sept. 16 X post .

Ethereum falls to new 40-month low vs. Bitcoin — Bottom or more pain ahead? image 1

Bitcoin ETF and Ether ETF flows. Source: Fred Krueger

Ethereum ETF outflows could be the reason behind Ether’s sluggish price action. By Feb. 15, ETFs accounted for about  75% of new investment  in Bitcoin, which had surpassed the $50,000 mark.

Since launch, US Ether ETFs have witnessed $581 million worth of net negative outflows. Grayscale’s Ether ETF accounted for the majority, or $2.7 billion worth of outflows, according to Farside Investors data .

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Ethereum ETF Flow (USD, million). Source: Farside Investors

Related: Bitcoin set for 3-month historic rally as analysts eye $92K BTC

Is the Ether bottom in?

Ether’s correction against Bitcoin could be the start of the price bottom ahead of a recovery, based on historical chart patterns, according to crypto trader Anbessa, who wrote in a Sept. 16 X post:

“ETH/BTC throwback to fib 0,382 at 0,03845 BTC. This should be the bottom”
Ethereum falls to new 40-month low vs. Bitcoin — Bottom or more pain ahead? image 3

ETH/BTC, 3-day chart, breakout. Source: Anbessa

Others also expect a potential rally, including popular crypto investor Hedgex, who pointed out a historically low relative strength index for ETH/BTC. The analyst wrote in a Sept. 16 X post:

“ETH/BTC has only been this oversold 5 times in the history of Ethereum. Each time much higher followed.”
Ethereum falls to new 40-month low vs. Bitcoin — Bottom or more pain ahead? image 4

ETH/BTC, all-time chart. Source: Hedgex

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.