Ethereum price rises by 50% against Bitcoin in one month — but there’s a catch


Ether (ETH), Ethereum’s native token, has been persevering with its uptrend towards Bitcoin (BTC) as euphoria round its upcoming community improve, “the Merge,” grows.

ETH at multi-month highs towards BTC

On the day by day chart, ETH/BTC surged to an intraday excessive of 0.075 on Aug. 6, following a 1.5% upside transfer. In the meantime, the pair’s positive factors got here as part of a broader rebound development that began a month in the past at 0.049, amounting to roughly 50% positive factors.

ETH/BTC day by day worth chart. Supply: TradingView

The ETH/BTC restoration partly has surfaced because of the Merge, which could have Ethereum swap from proof-of-work (PoW) mining to proof-of-stake (PoS).

Ethereum’s “rising wedge” suggests sell-off

From a technical perspective, Ether stares at potential interim losses as ETH/BTC paints a convincing rising wedge. 

Rising wedges are bearish reversal patterns that happen when the value tendencies increased inside a spread outlined by two rising, converging trendlines. As a rule, they resolve after the value breaks under the decrease trendline by as a lot because the construction’s most top.

ETH/BTC day by day worth chart that includes “rising wedge” breakdown setup. Supply: TradingView

Furthermore, a declining quantity and relative energy index (RSI) towards a rising ETH/BTC additional will increase bearish divergence dangers. This offers weight to the wedge’s bearish setup for a goal of 0.064 BTC, or down 11% from right this moment’s worth.

Ether appears to be like stronger vs. greenback

In the meantime, technicals paint a brighter image for Ethereum towards the U.S. greenback. The potential of a ten% breakout for ETH/USD appears to be like sturdy in August as a consequence of a basic bullish reversal sample.

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On a four-hour chart, ETH/USD has shaped what seems to be a “double backside.” This sample resembles the letter “W” as a consequence of two consecutive lows adopted by a change in route from downtrend to uptrend, as illustrated under.

ETH/USD four-hour worth chart that includes “double backside” breakout setup. Supply: TradingView

In the meantime, a double backside sample resolves after the value breaks above its widespread resistance stage and—as a rule of technical evaluation—rises by as a lot as the gap between the primary backside and the resistance. 

In consequence, ETH may rally towards $1,940 in August, up 10% from right this moment’s worth.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you must conduct your personal analysis when making a call.