Ethereum is showing signs of further underperformance against Bitcoin as a potential double-top pattern develops on the ETH/BTC daily chart, according to a report by CoinJournal.

Ether traded near 0.03167 BTC on September 16 after failing to sustain its latest advance. Weakening momentum, growing regulatory uncertainty, and a sharp increase in ETH deposits to Binance support a cautious near-term outlook for the pair. A confirmed breakdown below 0.03078 could send ETH/BTC approximately 10% lower, toward 0.0283 BTC. The ETH/BTC ratio is a widely followed gauge of Ether's relative strength, and swings in the pair are often read as a measure of shifting risk appetite across the crypto market.

Double-Top Pattern Forms on ETH/BTC Chart

The ETH/BTC chart has formed two comparable peaks near 0.03344 BTC, with the first appearing in August and the second in September. This structure resembles a double top, a bearish reversal pattern that develops when buyers repeatedly fail to break through the same resistance level.

The pattern's neckline sits near 0.03078 BTC, and Ethereum would need to record a decisive daily close below that level to confirm the bearish setup. Subtracting the pattern's height from the neckline produces a downside target of roughly 0.0283 BTC, a level that would represent an approximately 10% decline from Ether's current value against Bitcoin.

Momentum Weakens as RSI Retreats

The ETH/BTC Relative Strength Index, a momentum indicator that gauges the speed and magnitude of recent price moves, has fallen toward 50 after previously moving above the overbought threshold of 70. Although the RSI remains slightly above neutral, its retreat indicates that the momentum behind Ethereum's August-to-September recovery is fading.

Ether is still holding marginally above its 20-day exponential moving average, located at approximately 0.03162 BTC. A strong rebound from this moving average could delay or prevent a bearish breakdown, while a sustained move above the two peaks at 0.03344 BTC would invalidate the double-top scenario and restore a more bullish relative outlook for ETH.

Senate Setback Adds Regulatory Pressure

The bearish technical setup emerged as the US Senate failed to advance the Digital Asset Market Clarity Act on September 15. The bill is a market-structure measure that aims to establish clearer regulatory boundaries for digital assets in the United States. The procedural vote received 50 votes in favor and 49 against, falling short of the 60 votes required to move the legislation forward. A procedural vote change by Senator Thom Tillis preserves the possibility of reconsidering the measure.

The setback triggered a broader cryptocurrency sell-off. Bitcoin declined approximately 4% to around $75,900, while shares of major crypto companies, including Coinbase and Circle, also fell.

Regulatory uncertainty can encourage traders to favor Bitcoin over more risk-sensitive assets such as Ethereum. That dynamic could increase pressure on the ETH/BTC pair and bring the 0.03078 BTC neckline back into focus.

Binance Receives 709,400 ETH in One Day

Ethereum deposits to Binance have also increased sharply, creating another potential source of selling pressure. Approximately 709,400 ETH moved onto the exchange on September 11, marking the highest daily inflow since June, according to on-chain analytics provider CryptoQuant. Several recent sessions also recorded inflows exceeding 500,000 ETH, considerably above typical July and August levels.

Rising exchange inflows increase the amount of ETH immediately available for trading. Although transfers to exchanges do not necessarily mean holders intend to sell, unusually large deposits can precede higher market supply and increased volatility. As one of the largest cryptocurrency exchanges by trading volume, Binance is a venue whose deposit flows many analysts track when gauging potential supply. The elevated inflows reinforce the cautious outlook created by Ethereum's weakening relative momentum and the CLARITY Act setback.

Bulls Must Defend 0.03078

The bearish scenario depends on ETH/BTC closing decisively below the 0.03078 BTC neckline, with confirmation potentially opening the path toward the measured target of 0.0283 BTC. However, support from the 20-day EMA near 0.03162 BTC could allow Ether to rebound, and a break above 0.03344 BTC would invalidate the double top and signal renewed Ethereum strength against Bitcoin.

Beyond the chart itself, the preserved possibility of a renewed Senate vote on the CLARITY Act and upcoming CryptoQuant exchange-flow readings offer two additional markers for whether the pressures on the pair ease or build in the sessions ahead.

This article is based on reporting by CoinJournal.