Originally published on: September 29, 2024
Ether has been lagging behind Bitcoin significantly, hitting a three-and-a-half-year low against the leading cryptocurrency in September. With analysts predicting a potential breakout for Bitcoin in the near future, the question arises – could Ether follow suit and make a comeback?
While the odds may not be in Ether’s favor to hit a new all-time high anytime soon, there are some bullish signals in the market. Bitwise Asset Management’s CIO sees Ether as a potential contrarian bet, suggesting a possible turnaround for the digital asset.
Analyzing the long-term chart of the ETH/BTC pair reveals a symmetrical triangle pattern forming, indicating a stalemate between buyers and sellers. However, with moving averages trending downward and the RSI approaching oversold levels, bears appear to be in control.
If Ether manages to bounce off the support line and break above the moving averages, it could pave the way for a potential rally. A breakout above the triangle could set a new pattern target of 0.18 BTC, surpassing its previous all-time high.
On the other hand, the pair has been trading within a descending channel, forming lower highs and lower lows over time. Yet, a positive divergence in the RSI and a flattening out of the 20-day exponential moving average hint at a possible reversal in the trend.
To confirm this bullish sentiment, we need to see a break above the 50-day simple moving average, indicating a move towards the downtrend line. However, if the price sinks below key support levels, the pair may continue its downward trajectory.
In conclusion, while the outlook for Ether against Bitcoin may seem bleak, there could be a glimmer of hope for a potential turnaround. Investors should conduct their research and exercise caution before making any financial decisions in the volatile crypto market.
