The ETH/BTC pair is currently showing bullish signals, creating a sense of optimism about Ethereum’s (ETH) potential rebound in the cryptocurrency market. Recently, the pair has started trading within a bullish pattern on the monthly timeframe, hinting at a possible positive price shift.
Despite experiencing a rough patch, where ETH’s value plunged by over 20% from a high of $4,100 to around $3,200, a new bullish setup has emerged. This shift indicates that selling pressure may soon lose its grip as buyers re-enter the market, driving prices up.
A symmetrical triangle pattern is forming, with prices fluctuating between support and resistance levels. This development strengthens the potential for a breakout to the upside. Currently, with ETH trading near the bottom of this pattern, we can expect a significant upward movement. Three key levels to keep your eyes on are 0.0540, 0.0859, and 0.1202. If these levels are reached, purchasing one ETH with BTC could become increasingly expensive.
As the ETH/BTC pair trends higher, it also bodes well for ETH’s price against USDT, which is currently at $3,200. Should the anticipated rally materialize, ETH has a strong chance of reclaiming previous highs around $4,000 and possibly pushing even higher.
There’s a noticeable shift in market dynamics, as sellers appear to be losing momentum. The Relative Strength Index (RSI) had been trending downward but is now nearing the oversold zone at 32.19. Reaching this zone typically signals diminishing selling pressure, sparking renewed buying interest. As demand grows, the price of ETH could rise, leading to increased costs for potential buyers.
This fading selling momentum is corroborated by the Chaikin Money Flow (CMF) indicator, which is trending back toward positive territory. This indicates that buying pressure is gaining strength, suggesting that buyers are beginning to dominate the market, leading to a possible increase in ETH’s value.
Another positive indicator is the recent accumulation of ETH, as data from CryptoQuant shows more addresses are now holding the asset with a long-term outlook. The number of addresses holding ETH has surged by 60%, accounting for 16% of the total supply – a notable increase from 10% in August. This trend often reflects growing investor confidence, hinting at the possibility of a substantial price rally.
As we monitor these developments, it’s clear that the ETH/BTC pair is setting the stage for potential growth. Investors should remain vigilant to these key levels, as the overall market sentiment shifts toward the bullish side. The future looks promising for Ethereum enthusiasts!
