Ethereum Poised for Major Breakout Against Bitcoin
The cryptocurrency market recently experienced significant pressure, with both Bitcoin and Ethereum undergoing a notable crash. However, an intriguing shift is emerging in the dynamic between these two leading digital assets. While Bitcoin saw a more pronounced decline, Ethereum's performance relative to its older counterpart is now drawing attention, hinting at a potential significant turnaround. Technical analysis, particularly of the ETH/BTC ratio, suggests that Ethereum is approaching a critical breakout point. According to insights shared by crypto analyst Jonathan Carter, the ETH/BTC pair has been under an extended period of compression within a multi-year descending triangle on the 2-week candlestick chart. This long-term pattern, originating from a relative valuation peak in July 2017 when 1 ETH was worth 0.154 BTC, has formed a series of lower highs, establishing a falling resistance trendline. A robust support zone around 0.02 has consistently attracted buying interest for Ethereum relative to Bitcoin, forming the base of this triangle. The latest 2-week candlestick turning green signals a potential bullish shift, suggesting Ethereum could soon break above this overhead resistance.
Potential Upside Targets for ETH/BTC Ratio
Should Ethereum successfully break free from its downward trend against Bitcoin, Jonathan Carter outlines several potential upside targets. The immediate target for the ETH/BTC ratio is approximately 0.040, marking a clear departure from recent months' compressed range. Continued momentum could see the ratio climb higher, reaching objectives at 0.060, 0.085, 0.105, 0.124, and potentially even revisiting its 2017 peak of 0.154. It's important to note that these projections are based on Ethereum's relative performance to Bitcoin, meaning a breakout could manifest either through increased inflows into Ethereum compared to Bitcoin, or if Bitcoin experiences a more severe decline during a broader market correction. Both scenarios would inevitably lead to a substantial drop in Bitcoin's market dominance, potentially ushering in a robust altcoin season.
