Ethereum (ETH) price broke out from an important resistance level, but its rate of increase lags behind that of Bitcoin (BTC).
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. Specializes in decentralized applications and smart contracts. Since March 10, there has been a rapid increase in the value of ETH. On March 17, ETH crossed $1,700 and it was confirmed as a strong support ten days later (green symbol). The daily RSI also showed positive signs, breaking its previous downtrend and rising above the 50 level, which indicates an upward trend and supports the price hike.
In addition, since June 2022, ETH price has been moving in an ascending parallel channel, although the support and resistance lines of the channel are not fully verified. However, the center line of the channel has acted as resistance several times, indicating that the pattern is valid. On April 4, ETH price broke through the center line and rose significantly over the next 24 hours. If this trend continues, the price could reach the resistance line around $2,400.
Finally, if the entire movement within the channel is an ABC structure. If the A: C waves have a ratio of 1: 1 (white), it will lead to a rally towards $2,230, which is very close to the channel resistance line.
Despite these bullish signs, the bullish price outlook will be completely invalidated if ETH closes below the $1,700 area. In this case, a drop to the channel support line at $1350 could follow.
Ethereum (ETH) vs Bitcoin (BTC) Price Struggle
The ETH/BTC technical analysis shows an interesting development in the Bitcoin-Ethereum relationship. The pair has fallen inside the falling wedge since September 2022. The falling wedge is a bullish pattern, which means that a final breach is expected from it.
Moreover, ethereum price is trading above the 0.618 Fibonacci retracement support level at $0.063. This is the most common level for initiating reversals after a correction.
Finally, the 3-day RSI is almost oversold. This level previously started reversing (green circle). As a result, the eventual breakout of the wedge is the most likely scenario. If that happens, ETH could rise to the next nearest resistance at ₿0.077.
However, a breakdown from the wedge will invalidate ETH’s bullish outlook. The price might drop to the ₿0.055 support area in this case.
In conclusion, the Ethereum price trend is bullish as long as the price does not close below $1,700. While the digital asset is underperforming Bitcoin, it may soon exit its bullish pattern and start a bullish reversal against it. In the ETH/BTC pair, the bullish view will be nullified by a breakdown from the wedge.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.