Over the past four weeks, the price of Ethereum (ETH) has outperformed that of Bitcoin (BTC), although the price of ETH/USD has declined.
Waves and technical indicators on the daily time frame suggest that it will continue to outperform BTC, reaching new highs from 2018.
Ethereum Price Unable to Sustain Uptrend
ETH/BTC technical analysis on the weekly time frame is mixed. Since May 2021, the price has been trading between £0.055 and £0.078.
A trading range is a neutral signal because the price usually fluctuates between support and resistance lines before eventually moving out of the range.
The price may be trading inside a descending parallel channel. Even so, the pattern’s support line has yet to be fully validated.
However, unlike the support line, the midline has been verified several times (green icon). Therefore, if the price continues to sustain in the upper half of the channel, the chances of a breakout are high.
Also, weekly RSI results were mixed. By using the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and thus decide whether to increase or sell an asset.
If the RSI is above 50 and trending up, the bulls have the advantage, but if the indicator is below 50, the opposite is true. The indicator is bullish but still below 50, offering no clues to the direction of the trend.
Weekly ETH/BTC Chart | Source: TradingView
ETH Price Prediction: Has Price Bottom Already?
The daily time frame outlook offers a bullish outlook for several reasons.
First, wave numbers indicate that prices have bottomed out. Using the Elliott Wave Theory, technical analysts examine long-term price patterns and investor sentiment to determine the direction of a trend.
According to the number of waves, the price has completed an ABC correction structure (white), where wave B has the shape of a triangle.
This possibility is further supported by the fact that the correction ended exactly at the .618 Fib retracement level.
Next, the daily RSI formed a bullish divergence and held above the 50 level, another bullish sign.
Therefore, the pair may well have bottomed out and a strong rally is imminent.
Since ETH is the largest altcoin in the crypto market, its rise will lead to a decline in Bitcoin Dominance (BTC.D). This could trigger a wave of FOMO into altcoins in the short term.
ETH/BTC daily chart | Source: TradingView
Despite this bullish forecast, a break below the wave C low at 0.062 would suggest that the trend remains bearish.
In this case, a drop to the support area of £0.058 is most likely.
You can see the token price here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do their research carefully before making a decision. We are not responsible for your investment decisions.
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According to Beincrypto
