Categories: Ethereum

Ethereum is aiming for a rally against Bitcoin, with ETH price showing potential bullish divergence

Ethereum’s native token Ether (ETH) has fallen against leading crypto rival Bitcoin (BTC) since September 3.

Ether lost nearly 25% in value versus Bitcoin after peaking at 0.07955 BTC in September. When the top altcoin falls in price, it leaves a trail of lower highs and lower lows, creating an ascending channel.

Thereafter, ETH / BTC broke out of the Bullish Channel on October 23, giving rise to predictions of a strong prolonged recovery trend. But the October 24 sell-off and ongoing trading session prompted traders to test the channel’s resistance trendline for support.

ETH price chart shows bullish divergence

Sentiment increases Ether’s ability to re-enter the bearish range, as shown in the graph below.

ETH / BTC daily price chart with bullish divergence. Source: TradingView

At the same time, the formation of higher highs in the ETH / BTC Daily Commodity Channel Index (CCI) indicates a hidden divergence from the pair’s downtrend. For starters, the CCI is a momentum oscillator that measures an instrument’s fluctuations from its statistical average to identify potential turning points.

“Hidden divergence is always an indicator of a possible turnaround,” said Stefan Krecher, market strategist in Germany. “

Krecher predicts that Ether will hit a monthly pivot point around 0.071586 BTC, 8% closer to the current level. The upside target also coincides with the 0.618 Fib line (0.071505 BTC) of the Fibonacci retracement on the chart above.

On the other hand, there is a risk that if ETH / BTC re-enters the area of ​​the descending channel, it will encounter the area support trendline near 0.058238 BTC.

Ether price against the dollar

A bullish ETH / BTC price outlook comes as Ether holds USD 4,000 as solid support and rebounded more than 2.6% on Monday. Meanwhile, Bitcoin price has fallen nearly 3.5% after hitting a similarly strong bottom near $ 60,000.

As a result, ETH / BTC simply looks weaker against Ether due to Bitcoin’s strong appreciation against the dollar. However, the outlook for the Ethereum token looks optimistic, as previously reported by Cointelegraph with the support of the Ascending Triangle setup shown below.

The daily ETH / USD price chart has an ascending triangle setup. Source: TradingView

Ether broke out of the pattern in the daily timeframe, but at low volume, indicating a weakness in the price trend.

The cryptocurrency is now testing the upper trendline of the triangle to support a bullish trend confirmation. If a rebound follows, the price can hit new record highs above $ 4,384, with the triangle setup target near $ 6,500.

ETH supply crisis

In addition, the supply of Ether tokens has decreased after the London hard fork of the Ethereum network. In particular, the EIP-1559 improvement suggestion, which went live with the update, starts burning the ETH that it previously paid to the miners.

Data from WatchTheBurn.com shows the Ethereum network has destroyed nearly $ 2.25 billion of ETH since the London Hard Fork was launched.

Related: Altcoins Breakthrough Even As Bitcoin Price Drops To $ 60,000

In addition, the Ethereum 2.0 deposit agreement has attracted more than 8 million ETH, putting it out of circulation for at least a year.

The total value is set in the smart contract ETH 2.0. Source: CryptoQuant

Additionally, managed funds increased their ether holdings from 2.43 million ETH in November 2020 to 4.08 million ETH today, showing growing institutional demand.

.

.

Coincu

Recent Posts

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

19 minutes ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

48 minutes ago

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

2 hours ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

2 hours ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

2 hours ago

Clanker Token Trading Volume Hits $59.8 Million High On November 21

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

3 hours ago

This website uses cookies.