After a crucial week for ethereum, a technical candlestick deal shows that eth prices could be set for a strong rally in the coming weeks and months.
By pointing out events on the monthly chart, an analyst x.com/el_crypto_prof/status/1794990923107184973″ target=”_blank” rel=”nofollow”>grades that the eth/btc ratio reverses from a multi-year support trend line. Typically, the analyst continued, when prices bounce from this line, altcoin prices tend to react and tend to rise.
<img decoding="async" width="2560" height="1393" class="size-full wp-image-610051" src="https://technicalterrence.com/wp-content/uploads/2024/05/ETHBTC-Rebounds-from-7-Year-Support-Trendline-Ethereum-to-4900.jpg" alt="
eth/btc rises from crucial support trend line
eth/btc is a ratio closely monitored by technical analysts. Compare the performance of the world's first and second most valuable currencies.
Although bitcoin has held steady for most of the last two years, the monthly chart clearly shows a descending channel, indicating an upward trend.
So far, there have been a series of higher lows. This suggests that the bulls have been absorbed by selling pressure over the years, keeping prices high.
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If we look at the monthly chart, this month's bar will close firmly bullish. This will result in a double-bar bullish reversal pattern that may boost demand.
Subsequently, this will help increase eth prices further. Still, the relatively lower trading volume, lower than those seen in July 2022, suggests that participation is not at historically high levels.
A bullish bar in June confirming this month's gain could be the foundation for another rally. If this happens, it will mirror January 2021. Another 40% gain against bitcoin could see eth close above 0.08 btc, pushing the coin close to 2017 highs.
Overall, bitcoin has held firm. Since September 2022, btc has outperformed eth, erasing the gains of 2020 and 2021. The result was a descending channel, although this phase of lower lows also had relatively low participation levels.
Technically, based on a volume analysis, this is bullish for eth. Still, a close above 0.08 btc would be a strong testament to the bulls. It could potentially lay the groundwork for consolidating eth, further reducing btc's dominance.
Spot ethereum ETFs Driving Demand – Heading Toward $4,900?
Over the years since the launch and final approval of bitcoin spot exchange-traded funds (ETFs) in January, the digital asset was the only one recognized by the US Securities and Exchange Commission (SEC). .
Due to this advantage, the approval of the derivative product has made btc the benchmark asset of an institution. Wall Street players like Fidelity and BlackRock have been allowing exposure to btc through spot ETFs for the past four months, resulting in billions being invested in the asset.
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However, this changed last week when the US SEC approved listing all ethereum spot ETFs. eth stake removed from amended 19b-4 filings.
Still, the fact that ethereum is almost clearing represents a huge boost for the network and platform. eth prices soared up to 30% in response, outperforming bitcoin.
It is very likely that eth prices will continue to rise in the coming weeks. Although it remains to be seen what the reception will be like, especially among investors, the coin, like btc prices after mid-January 2024, will recover, perhaps surpassing $4,100 and even the all-time highs of 2021.
Featured image from iStock, chart from TradingView
