On May 23, the cryptocurrency market experienced a sudden price correction that caused digital assets to plummet. Bitcoin (BTC) and Ethereum (ETH) were among the worst-affected tokens. However, the ETH/BTC pair has shown remarkable resilience amid the recent crash.

The ETH/BTC pair measures Ethereum’s performance relative to Bitcoin and is an important metric for market participants. A rising ETH/BTC ratio means Ethereum’s stronger performance relative to Bitcoin, reflecting investor confidence and a shift in preferences within the cryptocurrency ecosystem.

The pair’s recent rise points to growing optimism for Ethereum, especially in anticipation of a potential spot Ethereum ETF approval.

The rise in ETH/BTC suggests that Ethereum’s popularity among traders and investors is increasing despite the broader market decline. The expected approval of a spot Ethereum ETF has driven this shift and is seen as a major catalyst for the current market sentiment.

An ETF would provide institutional and retail investors with a regulated, accessible way to invest in Ethereum, potentially leading to increased demand and price increases similar to the reaction following the approval of a Bitcoin spot ETF.

The market’s forward-looking nature caused investors to adjust their positions ahead of this decision, driving the ETH/BTC ratio higher.

Additionally, Ethereum’s utility, in contrast to Bitcoin’s primary use as a store of value, makes Ethereum attractive to investors seeking exposure to broader applications of blockchain technology.

The recent price action marks an important shift. The chart highlights a descending trendline that has served as a key resistance level since September 2022. This trendline has captured a series of lower lows, symbolizing the continued selling pressure on Ethereum relative to Bitcoin.

The ETH/BTC pair has made a strong upside move in an attempt to break above this downtrend line. If successful and sustained, this breakout attempt could signal a reversal of the long-term downtrend.

However, the trendline resistance proved too strong for the pair and ETH/BTC reversed its upward move on May 24. Moreover, the relative strength index remains neutral, although close to the overbought threshold, with a score of around 69 on the daily chart.

ETH price has failed to stay above $3,800 following the recent market correction, with the coin losing more than 5% to near a daily low of $3,630 on May 24.

If the downtrend continues, ETH price might test the support level near $3,580. If the immediate support level fails, Ethereum price might drop to its 20-day EMA (red wave) support near $3,340.

Conversely, if a recovery occurs, ETH price will face resistance near $3,990, after flipping it, it will help the coin target the resistance near $4,300 before correcting higher.

On the daily chart for ETH, the RSI remains neutral with a score of 67.12.