Originally published on: September 29, 2024
Ethereum has been lagging behind Bitcoin significantly, hitting a three-and-a-half-year low against the king of cryptocurrencies back in 2021. With Bitcoin showing signs of a potential breakout and reaching a new all-time high, the big question remains – is Ethereum doomed to underperform or is there a glimmer of hope for a turnaround?
While analysts remain cautiously optimistic about Bitcoin’s future price action, the same cannot be said for Ethereum. Despite being far from its peak, there seems to be a potential contrarian bet on the horizon for Ether as hinted by Bitwise Asset Management’s CIO in a recent blog post.
The long-term chart of the ETH/BTC pair reveals an intriguing symmetrical triangle pattern, signaling a battle between the bulls and bears. With moving averages sloping down and the RSI hovering near the oversold zone, the bears appear to be in control for now. However, a rebound off the support line could shift the momentum in favor of the bulls, potentially signaling a breakout above the triangle.
Trading within a descending channel, Ethereum continues to make lower highs and lower lows against Bitcoin. Despite this trend, a positive divergence in the RSI and a flattening 20-day exponential moving average suggest a possible reduction in selling pressure. A break above the 50-day moving average could pave the way for a move towards the downtrend line, potentially marking a trend reversal.
While the future remains uncertain, one thing is clear – the ETH/BTC pair is at a critical juncture. With a potential pattern target of 0.18 BTC on a breakout above the triangle, Ethereum might just have a chance to make a comeback against Bitcoin.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research before making any financial decisions.
