Ethereum’s native cryptocurrency, ether (ETH), has strengthened against its rival for the best spot – bitcoin (BTC) – despite the current routine in the crypto market. But can the ETH / BTC pair continue to strengthen in the coming months? Let’s look at the charts.
Ether Reduces YTD Losses Against Bitcoin
The ETH / BTC pair jumped 5.5% between the lowest level on May 9 (0.0720) and the highest level on May 10 (0.0759). ETH also rose nearly 9.75% against the US dollar, while bitcoin suffered a similar withdrawal over the same period.
The gains on the pairs came after sharp sales seen in the last 24 hours. The drop sent ether to its worst levels since January 2022 and bitcoin under $ 30,000 for the first time since July 2021.
The situation was similar in traditional markets, with the US benchmark, the S&P 500 (SPX), which fell 3.2% to its lowest level in 2022.
The dollar, on the other hand, hit its highest level in two decades, restoring its status as a “safe haven” during the market turmoil. In addition, demand for the cryptocurrency equivalent of pegged dollar stable coins has increased similarly.
$ USDT Exchange Outflow Volume (7d MA) reached a 3 month high of 34,010,868,697 USDT
See the metric: https://t.co/D90kNIpU2J pic.twitter.com/Xzb5DEXaqs
– glassnode alerts (@glassnodealerts) May 10, 2022
Exit numbers at the $ USDT exchanges were just after reaching a 3 month high of 34,010,868.697 USDT. See indicator: https://t.co/D90kNIpU2J pic.twitter.com/Xzb5DEXaqs – glassnode alerts (@glassnodealerts) May 10, 2022
ETH Price Breakout Technical Data Tips
Gains in ETH / BTC have brought it closer to testing its multi-month horizontal trend as resistance, which appears to be a “rising triangle” pattern.
Ascending triangles are usually trend follower patterns, meaning they send a price towards the previous trend.
According to the method of technical analysis, a decisive break above the upper horizontal trend line of the triangle shifts the profit target of the traders to a distance equal to the maximum height of the pattern.
ETH / BTC expects a similar move above its resistance horizontal trend line near 0.110 BTC, up more than 50% from the May 10 price.
See also: Analyst Says Exchanges Are Selling Your Bitcoin, Cryptocurrency Trading Platforms Respond
Conversely, an upside down rejection near the horizontal trendline could cause the ETH / BTC pair to pull back towards the lower upward trend of the triangle, which is in line with its 50-week exponential moving average (EMA). at 50 weeks; the red wave) close to 0.067. This represents an 11.25% drop from the price on May 10.
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