Technical candlesticks show that ETH’s price could rise sharply in the weeks and months to come after a critical week for Ethereum.
One analyst explains the events that occur in the monthly charts. notes The ETH/BTC rate reverses from a trendline that has been in place for several years. The analyst explained that altcoins tend to rise when the price of bitcoin returns from its previous line.
ETH/BTC Rises from Crucial Support Line
The ETH/BTC rate is closely watched by analysts. The performance of world’s most valuable coin and the second-most valuable coin is compared.
The monthly chart shows that Bitcoin is on the rise, even though it has been stable for most of the past two years.
There have been several higher lows. It is possible that the bulls have been taking in a lot of selling pressure, which has kept prices high.
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This month, the bar on the chart will be closed as a bullish one. It will create a bullish double-bar pattern, and this may be enough to ignite the demand.
It will also help to boost the price of ETH. Even though the trading volume is lower, it’s still lower than what was seen in July of 2022. This suggests that participation levels are not as high as they were historically.
The base for a new leg-up could be a bullish bar that confirms the gains of this month in June. This will be similar to the gains of January 2021. ETH’s 40% rise against Bitcoin would push the coin close to its 2017 highs.
Bitcoin is generally stable. BTC is outperforming ETH since September 2022. This has erased gains from the years 2020 and 21. This resulted in a downward channel. However, this period of lower lows was also characterized by low levels of participation.
A volume-based analysis shows that this is a bullish sign for ETH. A close over 0.08 BTC is still a good sign for the bulls. The bulls could use this to set a strong foundation that would allow ETH to gain more traction, and thus further limit BTC’s dominance.
How to get $4,900 with Spot Ethereum Funds?
The United States Securities and Exchange Commission was only able to recognize the Bitcoin digital asset in the past few years, since its launch and approval by the SEC of the spot Bitcoin Exchange-Traded Funds (ETFs).SEC).
BTC has become the asset of choice for institutions because of its advantages. Wall Street firms like Fidelity BlackRock are allowing exposure to BTC by way of spot ETFs. Over the past four-months, billions have been invested in this asset.
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Last week, the United States SEC decided to list all Ethereum spot ETFs. The amended 19b-4 file no longer includes ETH staking.
Even so, Ethereum’s near-clarification is a huge boost to the network. ETH’s prices soared by up to 30%, surpassing Bitcoin.
The price of ETH is expected to continue increasing in the coming week. Although it is yet to be determined how investors will react, it’s likely that ETH prices will continue rising in the coming weeks.
Feature image taken from iStock; chart by TradingView
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Source: www.newsbtc.com