Before today’s (June 10) dramatic Bitcoin (BTC) pump, Ethereum (ETH) yesterday had its own solid showing on the ETH/BTC pairing, which saw ether rise back into an interesting consolidation pattern.
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.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
