Home » Ethereum Surges and Reaches 2-Month High Against Bitcoin

Ethereum Surges and Reaches 2-Month High Against Bitcoin

by Logan King
Ethereum Surges and Reaches 2-Month High Against Bitcoin

The increase has pushed the value of ETH into significant resistance levels, posing a greater chance of a drop against Bitcoin.

To surpass a two-month high against Bitcoin, Ether, the native token of Ethereum, managed to avoid a bearish technical setup.

After Ethereum developers declared on July 14 that their long-awaited transition to proof-of-stake (known as the Merge) is likely to take place in September, the ETH/BTC pair invalidated its dominant bear flag pattern.

Since the information was announced, ETH/BTC has increased by more than 22%, reaching 0.067, its highest point since May 25. Additionally, as compared to the local bottom of 0.049 on June 13, the pair’s swift upward movement has increased its net retracement gains to 37%.

Ether Examines Crucial Tipping Point

A run-up toward the price range of 0.072–0.076 may be pursued by ETH/BTC due to strong fundamentals sparked by the Merge launch. This range served as important resistance in January and from March through May. It should therefore be the next upside objective for supporters of Ether.

However, there is a catch. Notably, ETH/BTC has been exhibiting signs of a decreasing upward momentum close to what seems to be a strong resistance confluence.

As illustrated below, this comprises a falling trendline resistance, a Fibonacci retracement line (close to 0.066 BTC), and a support-turned-resistance zone (the 0.064-0.068 BTC range).

Furthermore, the daily relative strength index, a momentum oscillator indicator for ETH/BTC, has gone into what is known as overbought territory, indicating increased risks of a sell-off.

The current ETH/BTC rise may not be sustainable, according to independent market analyst Altcoin Sherpa, who referenced a similar technical scenario on July 18.

Therefore, if the inflection resistance zone for a 9.5% decrease holds, ETH/BTC might reverse toward 0.06 by September.

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