Ethereum continues to lag behind Bitcoin, hitting a three-year low. Let's explore the possibility of a reversal and improvement.
ETH/BTC Long-Term Price Analysis
The long-term chart of the ETH/BTC pair shows the formation of a symmetrical triangle, indicating indecision between the bulls and bears. The bulls are defending the support line, while the bears are holding the resistance line. Both moving averages are sloping down, and the relative strength index (RSI) is near the oversold zone, indicating that the bears are in control. The ETH/BTC pair could drop to the support line, where buying is likely to occur. If the price rebounds off the support line and breaks above the moving averages, it could suggest further consolidation within the triangle. The next trending move could begin with a breakout either above or below. A breakout above could lead the pair to a target of 0.18 BTC, surpassing the current all-time high of 0.15 BTC.
ETH/BTC Short-Term Price Analysis
The pair has been trading inside a descending channel for several months, making a series of lower highs and lower lows. A minor positive sign for bulls is that the RSI has made a positive divergence, and the 20-day exponential moving average (0.04 BTC) has started to flatten. This suggests a reduction in selling pressure. A break and close above the 50-day simple moving average (0.04 BTC) will signal the start of a move towards the downtrend line. The pair will indicate a trend change on a break and close above the channel. This positive outlook will be invalidated if the price continues to drop and breaks below 0.038 BTC, which could sink the pair to the channel's support line.
Conclusion
Ethereum continues to underperform compared to Bitcoin, reaching a multi-year low. However, key technical indicators and patterns suggest potential reversal points. Investors and traders should closely monitor the pair's behavior around crucial support and resistance levels.
Ethereum continues to underperform compared to Bitcoin, reaching a multi-year low. However, key technical indicators and patterns suggest potential reversal points. Investors and traders should closely monitor the pair's behavior around crucial support and resistance levels.
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