Ether entered a bearish range that preceded a 35% price drop in the April-May 2022 session.
Ethereum’s native token, Ether
, recorded better gains than Bitcoin
in the last 24 hours despite the latter eventually breaking above the key $20,000 level.
Ether outperforms Bitcoin in a risk rally
On the daily chart, Ether jumped around 14% to reach its weekly high of $1,554 (data feed from Binance) on Oct. 26. Bitcoin has had a similar rally, but its weekly gains to date are only 6% by comparison.
The ETH/BTC pair gained 8%, reaching 0.075 BTC on Oct. 26.
ETH/BTC price today Source: TradingView
The boom in major crypto assets is in sync with the US stock market’s winning streak since Oct. 24. It also came against the backdrop of a weaker US dollar index, which typically trades inversely to the cryptocurrency market since March 2020.
Bear Fractal Alert
ETH/BTC’s recent price rally took it into a range that preceded a 35% correction in the April-May 2022 session (marked “R1” in the chart below) and was instrumental in its bullish outlook in August, to cap September 2022 (marked “R3” in the chart below).
ETH/BTC 3-day price chart. Source: TradingView
The range matches the area defined by the 0.236-0.382 Fib lines of ETH/BTC, or 0.072 BTC-0.077 BTC. Therefore, the pair may stabilize in the zone, followed by a correction to the 0.068 BTC-0.064 BTC zone, its short-term support levels.
Related: Ethereum’s merger won’t stop its price
Meanwhile, a decisive break below the 0.068 BTC-0.064 BTC area could expose Ether to drop to its multi-month rising trendline, which served as a strong recovery point after the April-May downtrend of 2022.
$ETHBTC | To update
The outlook after finishing the pair at the top.
You can get a good projection by analyzing RTed (for education) tweets.
With mLTF bearish indications from the red box, the price may visit the depth of the green box.
The red lines are another resistance zone. https://t.co/6zFhLWT1A0 pic.twitter.com/rKnxWsCS3E
— Efloud (@EfloudTheSurfer) October 26, 2022
That places the main downside target for ETH/BTC at around 0.059 BTC in Q4 2022, down 20% from current price levels.