Why Ethereum traders are closely watching ETH/BTC charts — Spoiler alert, it’s bullish
2024.11.08 15:27
Ether (ETH) is currently exhibiting its most significant weekly gains since May 2024. While BTC’s momentum has stalled over the past 24 hours, ETH’s price reached a quarterly high of $2,956, and the renewed price action triggered a 6% uptick for the ETH/BTC chart.
With Ethereum briefly leading Bitcoin (BTC) for the first time in months, the altcoin-BTC pair has caught the market’s attention for a potential trend reversal.
Ethereum breaks above a 161-day bearish trend
A pivotal daily breakout on the Ether daily chart is one key reason for the revived interest in the ETH/BTC trend.
Ethereum 1-day chart. Source: TradingView
As observed in the chart, Ethereum registered a breakout above a 161-day descending trendline on Nov. 6, which triggered positive market sentiment. The bearish trend has been active since May 2024, and ETH’s movement above the falling resistance pattern indicated a momentum swing for bullish investors.
With Bitcoin reaching a new all-time high and the ETH/BTC chart bouncing from a 2021 level, Marzell, an independent crypto trader, highlighted that ETH/BTC currently “shows the best buying opportunity for ETH in 4 years!”.
ETH/BTC eyes daily close above 50-day SMA
With initial optimism brewing, Benjamin Cowen, a crypto technical analyst, pointed out that, for the ETH/BTC trend to bottom, the trading pair needs to close a daily position above the 50-day simple moving average (SMA) indicator.
ETH/BTC on the 1-day chart. Source: TradingView
As illustrated in the chart, ETH/BTC has been under the 50-day SMA for most of 2024, with only brief spells above the indicator in Q1. A daily close above 0.04 would lead to a break of structure (BOS), potentially triggering a market reversal for the ETH/BTC chart.
Meanwhile, Freddy, an anonymous market analyst, remained on the fence and noted,
“Every single ETHBTC pump over 5% marked a local top, this year (except August)”
Related: Why is Ethereum (ETH) price up today?
TOTAL3 hits key resistance along ETH, ETHBTC
CryptoChille, a technical analyst, observed that the ETH, ETHBTC, and the TOTAL3 daily chart uniformly test a key resistance level. The TOTAL3 market cap represents all crypto assets, excluding Bitcoin and Ethereum, so it is a pivotal chart for other altcoins.
ETH + ETHBTC
key resistance has been reached on the daily chart. if these resistances break, the chances of a strong upward movement may increase.
this could also trigger the breakout of the total3 key resistance, leading altcoins to start a sharp rally as well. pic.twitter.com/cpiUJP0VTT
— ⓑ (@CryptoChille) November 7, 2024
From a technical perspective, the trading pair ETH/BTC also exhibits a significant monthly bullish divergence. With the relative strength index and Stochastic RSI reversing from an oversold region, the probability of a sustained uptrend increases based on historical outcomes.
ETH/BTC on the monthly chart. Source: TradingView
Related: Ethereum holder turns $38K into $30M after 8 years
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
