Ethereum's Ether Primed for Potential Gains Against Bitcoin in the Coming Weeks
Summary:
Ethereum's home currency, Ether (ETH), is anticipated to show significant gains against Bitcoin (BTC) in the coming weeks, backed by promising ETH/BTC technicals and bullish divergences. The estimation is based on a positive falling wedge pattern, although seasoned trader Peter Brandt disputes this, suggesting a potential bearish outcome. Longer-term charts, however, suggest a recovery by the New Year and into Q1 2024. The ETH price is also nearing a pivotal support confluence, which could limit any downward trends. It's essential to note these analyses are not financial advice, and all investment moves carry inherent risks.
Ether (ETH), the in-house cryptocurrency of the Ethereum platform, is set up for possible gains over Bitcoin (BTC) over the forthcoming weeks. This prediction is rooted in promising ETH/BTC technicals and positive divergences. It's believed that one primary driver behind a possible ETH/BTC surge is the current falling wedge pattern that it exhibits. A falling wedge typically indicates a bullish shift - it forms when the price produces lower highs and higher lows between two converging trendlines. The pattern is typically overcome when the price breaches the upper trendline, rising to a level equating to the largest distance between the upper and lower trendlines. As of Dec. 22, ETH/BTC follows a similar pattern, with hopes of breaking above its upper trendline. Based on the breakout point, the pair may climb to an area between 0.056-0.059 BTC by the New Year, a 6-13% rise from current pricing. However, experienced trader Peter Brandt disagrees, suggesting the falling wedge pattern might actually be a descending triangle - an indication of bearish activity. Descending triangles typically signify bearish continuation during downtrends, something that ETH/BTC has experienced over the last 15 months. Therefore, Brandt proposes a break below the lower trendline could push the ETH/BTC pair down toward 0.044 BTC, an 8.5% drop from current prices. Despite this, longer-term charts indicate a rebound by the New Year and in the first quarter of 2024. For instance, the price of Ether is showing lower highs as its relative strength index (RSI) produces higher lows on a weekly chart, reflecting bullish divergence. This discrepancy hints that the negative momentum is losing strength, potentially foreshadowing an upward shift. Moreover, the price is also nearing a support comprising a several-year rising trendline and the 0.048-0.052 BTC region. This support limits any possible downturns for ETH/BTC in the upcoming weeks, allowing a rebound toward the 200-week EMA (the blue wave) near 0.057 BTC by the New Year, aligning with the earlier-mentioned falling wedge prediction. Notably, on the contrary, the bears may attempt to drive the ETH price beneath the support, which could lead to a potential crash down to 0.036 BTC, a historically vital resistance level from August 2018 through September 2020. Readers should note that the contents of this article do not represent financial advice or recommendations. Every investment and trading move comes with its risks, and audiences are advised to carry out their own research before making any financial decisions.
Published At
12/22/2023 3:00:22 PM
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