The latest news in the cryptoasset market is, of course, Bitcoin’s (BTC) massive rocket through $10,000 (and into $11k). But what about the leading altcoin, Ethereum (ETH)? After taking a back seat to Bitcoin’s price action for a while, there are some signs that Ether is gathering strength for its own positive price action - that is, if Bitcoin doesn’t pump or dump.
On the USD chart, ETH has actually broken out of a ranging pattern, and the trend definitely looks up. We see that a huge bull flag, started on May 16, has been broken and price is climbing past the indicators. In this situation, we might expect a retest of at least the daily 9 EMA.
However, we can largely attribute this breakout to the inflated price effect that Bitcoin’s price has on other cryptos: other cryptos’ prices can rise or stay flat with Bitcoin’s own price rise, even as they are sold off versus Bitcoin itself.
This is indeed what has been happening with Ethereum, with aggressive selling on the ETH/BTC pairing during the momentous upward legs past $10,000 that we have witnessed in preceding days.
Looking below at the weekly ETH/BTC chart, we can see just how low ETH/BTC is now versus its historical performance against BTC - nearly at the bottom of a critical support (beyond which is no-man’s-land).
Zooming far into the 4 hour chart, we see the aftermath of a failed breakout of ETH/BTC’s consolidation pattern, and falling out of the pattern completely - due of course to Bitcoin’s blistering moves to the upside.
After falling out, ETH/BTC has fought to find support between ₿0.029-0.027 - and there are signs to indicate that it has perhaps finally found support down here.
Looking at the same chart, just zoomed in a bit, we should note the RSI performance on this double bottom.
Between each of the ETH/BTC bottoms, strength rose sharply and continues to rise. This bullish divergence suggests that buyers are stepping in, perhaps in anticipation of better ETH/BTC performance.
Of course, how this affects Ethereum’s USD performance depends on what Bitcoin does. But ETH is near historic lows versus BTC, and some upside on this chart is definitely possible. Rising strength suggests that buyers are ready for stronger performance against Bitcoin.
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