THE DAILY ENCRYPT

[date-today format='F j, Y']

Ethereum Technical Indicators Suggests a Further Breakout Leaving Bitcoin Behind

Weeks before the Merge launch date, Ether printed a bullish reversal pattern for Bitcoin....
blue and red line illustration
Photo by Pierre Borthiry

Weeks before the Merge launch date, Ether printed a bullish reversal pattern for Bitcoin.

After hitting 0.049 locally on June 13, Ethereum’s native token Ether has rebounded 40% against Bitcoin BTC. The ETH/BTC pair has reached two-month highs, and could continue its rally in coming weeks, according a classic technical pattern.

ETH paints handle and cup pattern
ETH/BTC have been forming a Cup and handling in their lower-timeframe charts starting July 18.

A cup-and-handle setup is common when the price falls. Then, it rebounds in what looks like a U-shaped recovery. This looks almost like a cup. The recovery causes a pullback, in which the price trend lower within a downward channel called the handle.

After the price rises to an approximate equal amount to the previous decline, the pattern will resolve. A similar bullish technical setup can be seen in the ETH/BTC chart.

The pair trades now lower within the handle range, but could recover towards the neckline resistance at 0.071 BTC. A decisive cup breakout and handle breakout above this level could take ETH/BTC up to 0.072, an increase of 12.75% over Saturday’s price.

The success rate of the cup and handle pattern in reaching its profit target is 61%, has potential technical issues and delays, as well as a contentious hardfork. A bug , for instance, had caused the Ethereum chain to be split during a 2020 network update.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News
PRESS RELEASES