Ethereum’s native cryptocurrency, ether (ETH), went to a two-month low against bitcoin (BTC), as cryptocurrency market sales increase on May 12th.
Macro heads wind up eventually with an ETH / BTC pair
The ETH / BTC pair fell 7.5% to 0.0663 in the last 24 hours. The downward move came as part of a correction that began on May 11 when the pair traded at the local high of 0.0768. This pushed Ether down against BTC as low as 13.75%.
In recent weeks, cryptocurrencies have been tested, as have been done on the stock markets. In fact, fund managers, traders and investors are showing signs of “risk – free” amid growing concerns about increasingly conservative nutrition.
Ether, the second largest cryptocurrency due to market capitalization, has also been hit by the same macro winds, trading now 65% below the all-time high of about $ 4,870 in November 2021. Similarly, bitcoin is down 63% of its total. highest time of $ 69,000 during the same period.
Due to a slightly limited reduction of ether compared to bitcoin, the ETH / BTC pair showed resilience despite the market downturn in 2022. However, the pair is showing signs of catching up with the downturn. worsening, suggesting that more trouble lies ahead.
The rupture of the raised wedge is at play
The recent decline in ETH / BTC has brought below its pattern of rising wedges, suggesting that the pair’s technical target could be well below local levels on 12 May.
The reason for this is that rising wedges are bearish reversal patterns that typically drive the price down as high as their maximum height, measured from the breakout point.
Therefore, the breakout target for the lifting wedge of the ETH / BTC pair is close to 0.064 after adding the maximum height of the structure, typically around minus 0.009 BTC, to the break point of 0.073 BTC.
Conversely, the ETH / BTC pair tested an upward trend, marked as “LTF support” in the chart above, in support from June 2021. The pair’s attempt to break below 12 May failed as traders redeem this reduction. This prompted Ether to withdraw 3.5% Ether from a day low of 0.066 BTC.
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However, ETH is facing a series of resistance levels as it looks to continue its upward trend in the coming days. They include an interim price cap of 0.069 BTC, defined by the 0.236 Fib line of the Fibonacci chart drawn from the 0.087 BTC high to the 0.064 BTC low, followed by an 200. day (200-day EMA; blue wave) at almost 0.073 BTC.
Bitcoin market dominance hits six months high
The plunge of the ETH / BTC pair coincided with the bitcoin dominance index, an indicator that measures bitcoin market share against altcoins, which rose to almost 45% on May 12, the highest level ever since November 2021 in respect of. bitcoin as the safest bet, “digital gold,” amid the current market turmoil.
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