Bitcoin
BTC$19 140.20

0.69%

Ethereum
ETH$1 052.12

-0.25%

Tether
USDT$0.999073

0%

USD Coin
USDC$1.000180

0.03%

Binance Coin
BNB$216.97

-0.05%

Binance USD
BUSD$1.000661

0.08%

Ethereum eyes rally against Bitcoin


25 Oct 2021

#Ethereum

The second-largest cryptocurrency will see over 8% growth against its top rival should the technical outlook play out. Ethereum’s native token, Ether (ETH), has been declining against its top crypto rival, Bitcoin (BTC), since Sept. 3. Ether dropped in value against Bitcoin by almost 25% after topping out in September at 0.07955 BTC. As the top altcoin declined, it left behind a trail of lower highs and lower lows, thus forming an ascending channel.

Later, ETH/BTC broke the channel to the upside on Saturday, raising anticipations about a strong extended recovery trend. But a selloff on Sunday and the ongoing session had traders test the channel’s resistance trendline as support.

ETH price charts suggest bullish divergence

The sentiment raised Ether’s possibility to reenter the falling range as shown in the chart. At the same time, the formation of higher highs in ETH/BTC’s daily commodity channel index (CCI) showed hidden divergence against the pair’s downtrend. For the uninitiated, CCI is a momentum oscillator that measures an instrument’s variations from its statistical mean to spot potential reversals.

“A hidden divergence is always an indicator for a possible trend reversal,” noted Stefan Krecher, a Germany-based market strategist, adding that ETH/BTC may rebound in the coming sessions also as the pair’s daily relative strength index (RSI) remains “not overbought.”

Krecher anticipated Ether to hit its monthly pivot point around 0.071586 BTC, almost over 8% of the current levels. The upside target also coincided with the 0.618 Fib line (0.071505 BTC) of the Fibonacci retracement graph in the chart above. On the flip side, reentering the descending channel range risked sending ETH/BTC to its range support trendline near 0.058238 BTC.

Ether price against the dollar

The bullish ETH/BTC price outlook appeared as Ether held $4,000 as solid support while rebounding over 2.6% Monday. Meanwhile, Bitcoin’s price retraced almost 3.5% after setting up a similarly strong price floor near $60,000. As a result, ETH/BTC merely looked weaker because Bitcoin rallied strongly against the United States dollar than Ether. Nevertheless, the Ethereum token’s prospects looked bullish, as earlier reported by Cointelegraph, with the aid of an ascending triangle setup shown below.

Ether broke out of the pattern on the daily timeframe but with little trading volume, showing weakness in the price trend. The cryptocurrency now tests the triangle’s upper trendline as support for bullish confirmation. Should a rebound follow suit, the price could eye new record highs above $4,384, with the triangle setup’s target sitting near $6,500.

ETH supply crunch 

Additionally, the supply of Ether tokens has been declining after the Ethereum network’s London hard fork. Namely, the Ethereum Improvement Proposal 1559, which went live with the update, started burning ETH that it previously paid to miners. Data collected from WatchTheBurn shows that the Ethereum network has destroyed almost $2.25 billion worth of Ether tokens since the London hard fork’s launch.

Additionally, the Ethereum 2.0 deposit contract has attracted more than 8 million ETH, thereby removing them from circulation for at least a year.

Moreover, regulated funds have increased their Ether holdings from 2.43 million ETH in November 2020 to 4.08 million ETH today, signifying increasing institutional demand.


Related

MultiBank Group Leverages Its Power to Increase Global Crypto Adoption
MultiBank Group Leverages Its Power to Increase Global Crypto Adoption
Bitcoin and Ether reached two of three bears' targets
Bitcoin and Ether reached two of three bears' targets
Ethereum double Doji pattern hints at a 50% ETH price rally by September
Ethereum double Doji pattern hints at a 50% ETH price rally by September
Flight of cryptocurrencies interrupted
Flight of cryptocurrencies interrupted
ETH/USD trading pair attracts more traders in the first quarter of 2022
ETH/USD trading pair attracts more traders in the first quarter of 2022
Is The Virtual Land Market Becoming a Bubble?
Is The Virtual Land Market Becoming a Bubble?
MultiBank Group reveals new crypto brand, MultiBank.io
MultiBank Group reveals new crypto brand, MultiBank.io
Two key Ethereum price metrics suggest traders will struggle to hold the $2K support level
Two key Ethereum price metrics suggest traders will struggle to hold the $2K support level
Join Blablagame presale right now
Join Blablagame presale right now

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 60.8% 88 $19 140.20 0.69% -10.68% $365 286 501 881 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 55.6% 93 $1 052.12 -0.25% -14.42% $127 732 400 345 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $0.999073 0% -0.04% $66 020 314 113 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000180 0.03% 0.02% $55 812 644 858 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 61.2% 75 $216.97 -0.05% -9.70% $35 426 838 093 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 95.2% 1 $1.000661 0.08% 0.04% $17 558 830 487 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 64% 69 $0.316937 1.69% -12.93% $15 321 697 757 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 65.6% 71 $0.448043 0.04% -11.32% $15 122 596 829 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 66% 69 $32.98 0.94% -19.51% $11 325 363 890 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 70.4% 62 $0.066106 1.00% -14.30% $8 770 292 754 DOGE 7 days price change
11 Dai (DAI) DAI Dai predictions 92% 1 $1.000314 0.02% 0% $6 923 688 572 DAI 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 69.6% 67 $6.72 0.35% -17.69% $6 633 125 820 DOT 7 days price change
13 TRON (TRX) TRX TRON predictions 62.4% 74 $0.065691 3.85% -4.12% $6 075 697 886 TRX 7 days price change
14 UNUS SED LEO (LEO) LEO UNUS SED LEO predictions 70% 54 $5.88 2.75% 0.12% $5 608 593 130 LEO 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 68% 63 $0.000010 1.24% -13.41% $5 530 696 233 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.