The second-largest cryptocurrency by market value, Ether (ETH), has been underperforming Bitcoin (BTC) for a few months now. On September 18, it hit a three-and-a-half-year low against the top cryptocurrency. Many people are wondering if Ether will keep going down or if the ETH/BTC trade pair is getting ready for a possible turn around. This level was last seen in early 2021.
In the past few months, Bitcoin has been pretty stable. It has been trading in a narrow range, with no clear breakout in either direction. Many people who follow the market, though, think Bitcoin will soon break out of this range.
By the end of the year, it might even hit a new all-time high. What about Ether? Its price is still a long way below its all-time high of about $4,800, and experts don’t think it will get back there any time soon.
This view is supported by the fact that 85% of people who use Polymarket to make predictions don’t think Ether will reach a new all-time high in 2024. The more optimistic statements about Bitcoin’s future are very different from these negative ones. There is no doubt that the markets for these two products are feeling very different emotions right now.
Not all experts are against Ether, even though most of them are. Since recently, the CEO of Bitwise Asset Management has said that Ether is a “potential contrarian bet” for the rest of 2024. The executive wrote on September 17 in a blog post that the recent drop in the price of Ether was disappointing, but it could be a chance for long-term buyers if the market changes.
Ethereum’s Symmetrical Triangle Signals Indecision Amid Bearish Pressure
The ETH/BTC pair’s long-term chart displays a symmetrical triangle pattern, which is usually a sign that buyers and sellers aren’t sure what to do. The bears are keeping pressure on the resistance line while the bulls hold the support line. This makes it hard to predict what the pair will do next.
The fact that both the 50-week and 200-week moving averages are going down shows that the bears are currently in charge. The Relative Strength Index (RSI) is close to the oversold area, which supports this bearish view. But if the pair finds support at the bottom of the triangle and bounces back, it could mean the start of a long period of stabilization.
If the price of ETH/BTC breaks above the triangle’s support line, it could go up to 0.18 BTC, which would be above its all-time high of 0.15 BTC.
Over the past few months, the ETH/BTC pair has been moving in a downward trend, with lower highs and lower lows every day. The RSI’s positive split could be good for Ether bulls because it means that the selling pressure may be weakening. Also, the exponential moving average (EMA) for the past 20 days has begun to thin out around 0.04 BTC, which suggests that Ether’s price may be stabilizing.
The 50-day simple moving average (SMA) is currently around 0.04 BTC. If the pair breaks above and stays above this level, it could be the start of a bigger move toward the top of the drop.
If this price goes up, it means that the trend has changed, and Ether could face Bitcoin again. This positive view would be thrown out, though, if the pair breaks below the important support level of 0.038 BTC. The price is then likely to fall even more to the channel support line.
The ETH/BTC pair finds a quite crucial position. While Ether’s future is now unknown, Bitcoin seems to may move significantly later this year.
Although Ether’s technical image suggests a potential time of consolidation, there has not yet any obvious indication of a positive move. To climb back on top of Bitcoin, Ether must break out from its present declining channel and maintain going above crucial support levels.
