The crypto industry came under intense pressure last week, with multiple cryptocurrencies collapsing, with Bitcoin and Ethereum leading the charge. It hit a new low for the first time in several months. of The crash was more pronounced in Bitcoin.however, Imbalance of selling pressure The relationship between the two assets is quietly changing.
An interesting imbalance is evident in Ethereum's performance compared to Bitcoin. technical analysis of $ETH/$BTC The ratios shared by Jonathan Carter on social media platform
Long-term love triangle is on the verge of collapse
According to the technical analysis of $ETH/$BTC 2 week chart, Ethereum is We're approaching an important point vs. Bitcoin after years of consolidation below the downtrend line. This long-term pattern stems from a large peak in relative valuation in July 2017. $ETH It was worth 0.154 $BTC It then formed a series of lows to form a descending resistance trend line. The lower bound of this pattern is the support zone around 0.02 that has been tested and repeatedly drawn over the years. Ethereum purchase interest rate In relation to Bitcoin.
At the time of writing, $ETH/$BTC The ratio is trading around 0.030. However, the most recent two-week candlestick has flipped to green, and this development is important for the bullish outlook for Ethereum's performance versus Bitcoin.
The bullish prediction is based on a full development of green candlesticks pushing towards the descending triangle resistance trend line. If this pair can convincingly break through the upper trend boundary of the descending triangle with sustained momentum, Ethereum could enter a phase of sustained outperformance versus Bitcoin.
how high can you go $ETH/$BTC Will you go if a breakout happens?
Cryptocurrency analyst Jonathan Carter has outlined a series of potential upside targets in the event of a crypto market collapse. $ETH/$BTC pair Breaking out of a downtrend. The initial goal is around 0.040 $BTCThis would represent a clear departure from the compressed range seen in recent months. If this momentum continues, even higher goals could be achieved: 0.060, 0.085, 0.105, 0.124, and even the 2017 peak of 0.154.
Converting these ratio-based targets into absolute price levels is not so simple. This is because the predictions are based on Ethereum's performance compared to Bitcoin, rather than independent price movements. Such performance can occur in two main ways. One is the possibility that Ethereum receives more inflows than Bitcoin, or that Bitcoin crashes more than Ethereum during a market-wide correction.
The former scenario will most likely translate into a sustained rotation into Ethereum and the broader altcoin market, setting the stage for altcoin season. Nevertheless, in both scenarios, Otherwise strong Bitcoin advantage diminishes In large quantities.
Featured image from Pixabay, chart from Tradingview.com
