ETH/BTC could hit 0.10 this year as the market awaits the shift from Ethereum to proof-of-stake.
Ethereum’s native token Ether (ETH) is down around 17% against the US dollar over the past two weeks. But its performance against Bitcoin (BTC) was less painful as the ETH/BTC pair fell 4.5% over the same period.

The pair’s downward movement is manifested by the fact that both ETH/USD and BTC/USD are falling almost in sync, reacting to the Federal Reserve’s potential to hike rates by 50 basis points and reduce its balance sheet by $95 billion per dollar Month.

The latest data, released on April 12, shows consumer prices rose 8.5% in March, the fastest since 1981.

BTC/USD vs ETH/USD daily price chart. Source: Trade View
ETH/BTC triangle breakout
Some technical indicators remain bullish despite ETH/BTC’s decline over the past two weeks. Based on the classic continuation pattern, the pair still appears poised to continue its strong bull run in 2022.

Notably, ETH/BTC corrected from the horizontal resistance level, which is an ascending triangle area combined with rising trendline support.

Ascending triangles usually guide the price in the direction of their previous trends. So since ETH/BTC was up prior to its formation, there is a decent chance that its bull run towards the February 2018 highs could continue by 0.1 BTC based on the setup shown in the chart below.

ETH/BTC weekly price chart with an ascending triangle. Source: Trade View
However, the intermediate market setup appears to be skewed to the downside as ETH/BTC is seeing a correction towards the triangle’s lower trendline after pulling away from the upper trendline.

Bearish reversal scenario
According to a study by Samurai Trading Academy, ascending triangle breakouts achieve their upside targets almost 73% of the time.

In a separate report, veteran investor Tom Bulkowski also notes a 70 percent success rate for ascending triangles, highlighting the high probability that Ether will hit 0.10 BTC in 2022.

Related: Bitcoin returns $40,000 as 24-hour crypto liquidation is about $500 million

However, this still leaves ETH/BTC a 30% chance of nullifying its ascending triangle setup.

Weekly ETH/BTC price chart. Source: Trade View
Coincidentally, the pair will break below the lower trendline of its triangle, which also coincides with its 50-week exponential moving average (red wave in the chart above) around 0.06 BTC, opening the door for another drop to 0.05 BTC opens , i. H. e.g. May-June 2021 support zone.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every step of investing and trading involves risk, you should do your own research when making a decision.

Source: CoinTelegraph

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