ETH/BTC Bounces From A 7-Year Support Trend Line: Ethereum To $4,900?
May 27 2024 - 2:30PM
NEWSBTC
After a crucial week for Ethereum, a technical candlestick
arrangement shows that ETH prices could prepare for a sharp upturn
in the coming weeks and months. Pointing out events in the monthly
chart, one analyst notes that the ETH/BTC ratio reverses from a
multi-year support trend line. Usually, the analyst continued, when
prices bounce from this line, altcoin prices tend to react,
trending higher. ETH/BTC Rising From Crucial Support Trend
Line The ETH/BTC is a ratio closely monitored by technical
analysts. It compares the performance of the world’s first and
second most valuable coins. Although Bitcoin has been firm for the
better part of the last two years, the monthly chart clearly shows
a descending channel, indicating an upward trend. So far, there
have been a series of higher lows. This suggests that bulls have
been soaking in selling pressure over the years, keeping prices
higher. Related Reading: XRP Bullish Outlook: Analyst Predicts Mega
Run On The Horizon Looking at the monthly chart, this month’s bar
will close firmly as bullish. This will result in a double-bar
bullish reversal pattern that may ignite demand. This will
subsequently help pump ETH prices even higher. Even so, the
relatively lower trading volume, lower than those seen in July
2022, suggests that participation is not at historically high
levels. A bullish bar in June confirming this month’s gain could be
the base of another leg up. If this happens, it will mirror those
of January 2021. Another 40% gain versus Bitcoin could see ETH
close above 0.08 BTC, propelling the coin closely toward 2017
highs. Overall, Bitcoin has been firm. From September 2022,
BTC has been outperforming ETH, erasing gains from 2020 and 2021.
The result was a descending channel, though this phase of lower
lows also had relatively low participation levels. Technically,
based on a volume analysis, this is bullish for ETH. Even so, a
close above 0.08 BTC would be a strong testament from the bulls. It
could potentially set a foundation to cement ETH, further narrowing
BTC’s dominance. Spot Ethereum ETFs To Drive Demand: Path To
$4,900? Over the years since launching and the final approval of
spot Bitcoin exchange-traded funds (ETFs) in January, the digital
asset was the only one recognized by the United States Securities
and Exchange Commission (SEC). Because of this advantage, the
approval of the derivative product has seen BTC become an
institution’s go-to asset. Wall Street players like Fidelity and
BlackRock have been enabling exposure to BTC via spot ETFs over the
past four months, resulting in billions being poured into the
asset. Related Reading: Chart Whisperer Spots Algorand
Breakout: Get Ready For A 50% Rally However, this changed last week
when the United States SEC approved listing all spot Ethereum ETFs.
ETH staking was removed from amended 19b-4 files. Still, the fact
that Ethereum is almost being clarified represents a massive boost
for the network and the platform. ETH prices shot by as much as 30%
in response, outperforming Bitcoin. It is highly likely that ETH
prices will continue rising in the coming weeks. Though it remains
to be seen how the reception will be, especially among investors,
the coin, like BTC prices post mid-January 2024, will rally,
perhaps breaking $4,100 and even all-time highs of 2021.
Feature image from iStock, chart from TradingView
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