Ethereum’s token, ETH (ETH), coincided with other cryptocurrencies on December 4th. However, the negative movement did not prevent it from reaching a three-year high against Bitcoin (BTC), the world’s leading cryptocurrency by market value.
The ETH / BTC exchange rate jumped slightly above 11.50%, reaching 0.0835 BTC for the first time since May 2018. The pair’s rally was in contrast to the 15% fall in Ether against the US dollar on December 4, which appeared in the wake of the sale. A market that has seen Bitcoin fall as much as 21% on the day.
ETH / USD daily price chart. Source: TradingView
The emergence of a “hedging” narrative between ETH and BTC
While the ether’s losses were significant, they were relatively modest compared to the bitcoin dollar, as the ETH / BTC pair rose to a three-year high. At the same time, some analysts believe that investors began to regard the second largest cryptocurrency as a safer haven than Bitcoin during the December 4 crash.
“It looks like investors are using ETH as a hedge,” Crypto Birb, an independent market analyst, said in a December 4 tweet, referring to the four-hour ETH / BTC price chart (shown below). . Sharp after the 200-period moving average (orange wave) was tested as support.
ETH / BTC four-hour price chart with 200-period moving average support. Source: TradingView
Lucas Enzersdorfer-Konrad, product manager at Bitpanda, noted that the ETH / BTC closing in November was the best in 45 months, which means that the bulls still had “some strength to run more.”
“This year, Ethereum has surpassed Bitcoin by a large margin […] and has increased its market dominance to 22%. The number of active addresses on the network continues to grow, while net emissions from ETH continue to decline, which is probably the main reason for the rapid the growth. ”
As we mentioned earlier on the Cointelegraph, Ether has shown the potential for a continuation of the bullish trend thanks to a technical support pattern called the rising triangle.
Related: Ethereum goes parabolic against Bitcoin when analysts weigh BTC fall
On December 4, the ETH / BTC pair broke out of the rising triangle area, accompanied by a slight increase in trading volume. In an “ideal” world, the upward movement of the pair should extend until it reaches levels with maximum distance between the upper and lower trend lines of the triangle, measured from the breaking point.
In an “ideal” world, the upward movement of the pair should extend until it reaches levels with maximum distance between the upper and lower trend lines of the triangle, measured from the breaking point.
ETH / BTC weekly price chart with a bullish channel pattern. Source: TradingView
As shown in the diagram above, the growth target of the triangle from the breakpoint sets around 0.077 BTC a profit target of around 0.1 BTC.