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.
Sentiment increases Ether’s ability to re-enter the bearish range, as shown in the graph below.
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.
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.
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.
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.
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.
.
.
Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…
Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…
Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…
SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…
Sheetz crypto payments: 750+ US stores now accept Bitcoin, Ethereum, and more, rewarding customers through…
Zhu Su’s wife sells Singapore mansion for $38.5 million amid heightened financial scrutiny on Three…
This website uses cookies.