Looking at the four hour Binance chart, below, we see the bottom flank of a triangle consolidation pattern was briefly lost and then retaken yesterday and into the early hours of the morning today (UTC).
However, a closer inspection reveals that ETH will have to do more work to become a non-risky buy. Volume has not really built up since retaking the level, save a spike most likely associated with today’s Bitcoin action. A close and longevity above the 55 hour EMA would go a long way in fostering some confidence.
(source: TradingView.com) By the same token, a daily candle close above ₿0.0308 would go a long way in tempting some buy orders. A little under a week and a half still remains, roughly, until the consolidation pattern is due to complete. Doubtless many traders will be watching closely for signs of a breakout, whether up or down.
We can supplement our ETH/BTC chart with a very interesting ETH/USD chart - interesting because of the Bitcoin inflation effect on all cryptos’ USD prices.
On this chart, ETH is also completing a consolidation pattern; but here a usually bearish descending triangle rather than a neutral symmetrical one like ETH/BTC.
The Bitcoin pump of today has pushed ETH/USD briefly up and out of its own consolidation. Things from here look volatile: ETH could go either way, either getting rejected hard toward $200, or rocketing up back to $300. Because of the erratic Bitcoin reversals that have become normal in the last week, there is not much way to tell which direction ETH will go.
For now, ETH/BTC will probably give us more warning concerning direction than ETH/USD - which can be inflated or deflated at will by Bitcoin’s reversals.
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