Ethereum and Bitcoin are two high-power projects, and how they move does set the trend in the crypto market.
Bitcoin may be the first, but Ethereum is the second major project following the digital gold.
If Bitcoin is the first generation, Ethereum is the second enhanced iteration with some features ported from its predecessor.
ETH/BTC Market Performance and Price Status
Thus far, however, Bitcoin remains the lead as a store-of-value and, in certain instances, a medium of exchange.
Ethereum, on the other hand, is a global computer. The smart contracting platform is the home of DeFi and serious NFT projects.
Most NFT activity is on the layer-1 network with over $90 billion of DeFi TVL under management in the platform.
Thus far, the tussle for supremacy presents an opportunity for the discerning trader and investors. Even so, the rally of Bitcoin did press the ETH/BTC lower.
However, as per the performance in the daily chart, there are glimpses of hope for ETH bulls.
After periods of lower lows, ETH is springing higher, outperforming BTC, resulting in a three-bar bullish reversal pattern clear in the daily chart.
Besides, since the uptrend has decent participation, the close above the middle BB will be significant.
Notably, the 20-day moving average was a stubborn resistance level, now support, which capped buyers in the last four to five weeks.
Therefore, the breach to the upside of last week could indicate a changing momentum in favor of ETH bulls angling for immediate resistance levels at 0.07 BTC and 0.08 BTC.
Ethereum to Explode back to 0.12 BTC
An analyst on Trading View is putting her money on Ethereum as per the development in the weekly chart.
While ETH/BTC prices are in consolidation, buyers have the upper hand, and ETH may rip higher to 0.12 BTC in the medium term.
Per the analyst’s analysis, the zone between 0.055 BTC and 0.065 BTC on the weekly chart is a strong loading point.
As such, ambitious ETH bulls expecting the coin to carry the day may search for entries.
Even so, if sellers press lower and BTC buyers remain on top of crypto proceedings, a drop below 0.05 BTC would nullify the bullish outlook.
If buyers take over and ETH closes above the 0.08 BTC, the follow-through wave would likely lift the coin to all-time highs at 0.12 BTC.
ETH/BTC is Carrying the Altcoin Market
According to one trader on Twitter, the ETH/BTC is currently trending the pace for the altcoin market.
In the daily chart, the analyst picked out a bullish divergence pattern printing at the bottom of the bull flag—a pennant.
Can act like this is not there but that's not how this game works.
— ALTBTC𝕔𝕪𝕔𝕝𝕖𝕤 🔄 (@JJcycles) October 21, 2021
As per the analyst’s assessment, this is bullish and supportive of ETH bulls. Therefore, the analyst expects ETH bulls to outperform in the next cycle, effectively propping the altcoin market.
Presently, due to the correction of the BTC price, most altcoins are stable but bearish.
Further shavings, however, would be catastrophic for periphery altcoins but bullish for ETH, whose fundamentals remain rock solid and prices relatively steady.
Will ETH/BTC Melt Faces?
It is also the view of yet another trader who thinks ETH/BTC price action favors buyers.
i still believe ethbtc is in a HTF triangle and will melt faces in the coming months.
seeing a lot of calls for it to sweep the 2021 lows and 0.05 and lower but im doubtful of that. pic.twitter.com/4b2OrUizpt
— Bluntz (@SmartContracter) October 20, 2021
As such, this gives ETH bulls the leeway to potentially “melt the faces” of traders as they exceed expectations, surging higher in continuation of the late last week’s trend.
The analyst remains bullish and contrarian despite bear calls predicting ETH/BTC to nuke below 0.05 BTC.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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