Originally published on: September 29, 2024
Ethereum has been lagging behind Bitcoin for quite some time now, hitting a three-and-a-half-year low against the pioneer cryptocurrency. But could this low point actually be a golden opportunity for investors to jump on the ETH train before it makes a comeback?
While Bitcoin has been trading sideways, analysts are predicting a breakout that could lead to a new all-time high. However, the same optimism is not shared for Ethereum, which still has a long way to go to reach its peak. In fact, the odds of Ether hitting a new all-time high by 2024 are only 15%, according to Polymarket, the world’s largest prediction market.
But all hope is not lost for Ether enthusiasts. Bitwise Asset Management’s chief investment officer sees potential in Ethereum as a “contrarian bet” for the remainder of the year.
So, could Ethereum surpass Bitcoin in the near future? Let’s take a closer look at the ETH/BTC pair to see if a turnaround is on the horizon.
Analyzing the long-term chart of the pair reveals a symmetrical triangle pattern, reflecting a battle between the bulls and the bears. While the bears currently seem to have the upper hand with both moving averages sloping down and the RSI near oversold territory, buyers are expected to step in at the support line.
If Ether manages to bounce off the support line and break above the moving averages, we could see the pair extending its stay within the triangle. A breakout above the triangle would set a pattern target of 0.18 BTC, surpassing the current all-time high of 0.15 BTC.
On the daily chart, the ETH/BTC pair has been trading within a descending channel, forming lower highs and lower lows. However, a positive divergence in the RSI and a flattening 20-day exponential moving average offer a glimmer of hope for the bulls.
A break above the 50-day simple moving average would signal a move towards the downtrend line and potentially mark a trend change for the pair. On the other hand, a downward move below 0.038 BTC could push the pair towards the channel’s support line.
While the future of Ethereum against Bitcoin remains uncertain, the possibility of a turnaround is not completely off the table. As the market continues to evolve, investors should stay informed and conduct their own research before making any investment decisions.
