Originally published on: September 29, 2024
Ethereum has been lagging behind Bitcoin by a significant margin, hitting a low against the largest cryptocurrency by market capitalization not seen since 2021. The big question now is whether this dip presents a buying opportunity for Ether or if it will continue to underperform.
While Bitcoin has been trading sideways for months, with some analysts predicting a breakout and a new all-time high in the fourth quarter, the outlook for Ether is less optimistic. According to Polymarket, there is an 85% chance that Ether will not reach a new all-time high by 2024.
Despite the pessimism, Bitwise Asset Management’s CIO sees potential for Ether as a “contrarian bet through the end of the year.” Could this signal a turnaround for Ethereum against Bitcoin?
Analyzing the chart of ETH/BTC reveals a symmetrical triangle pattern, indicating a standoff between the bulls and bears. The pair is currently testing support, with moving averages sloping downward and the RSI near oversold territory, suggesting bearish control. However, a bounce off support could see the pair aim for a breakout above the triangle, potentially targeting 0.18 BTC.
On the daily chart, ETH/BTC has been trading within a descending channel, but a positive divergence in the RSI and flattening moving averages hint at reduced selling pressure. A breakout above key levels could signal a trend change, while a break below support may extend the downward momentum.
In the volatile world of cryptocurrencies, predicting price movements is challenging. However, analyzing the technicals of the ETH/BTC pair offers insights into the potential turnaround of Ethereum against Bitcoin. Will Ether manage to outperform its rival in the coming months? Stay tuned to find out.