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Why Ethereum traders are closely watching ETH/BTC charts — Spoiler alert, it’s bullish

After lagging Bitcoin for most of 2024, Ethereum appears to be in the early stages of a bullish trend reversal. Here’s why traders are closely watching the ETH/BTC pair.

COINTELEGRAPH IN YOUR SOCIAL FEED

Ether (ETH) is currently exhibiting its most significant weekly gains since May 2024. While BTC’s momentum has stalled over the past 24 hours, ETH’s price reached a quarterly high of $2,956, and the renewed price action triggered a 6% uptick for the ETH/BTC chart.

With Ethereum briefly leading Bitcoin (BTC) for the first time in months, the altcoin-BTC pair has caught the market’s attention for a potential trend reversal.

Ethereum breaks above a 161-day bearish trend

A pivotal daily breakout on the Ether daily chart is one key reason for the revived interest in the ETH/BTC trend.

Ethereum 1-day chart. Source: TradingView

As observed in the chart, Ethereum registered a breakout above a 161-day descending trendline on Nov. 6, which triggered positive market sentiment. The bearish trend has been active since May 2024, and ETH’s movement above the falling resistance pattern indicated a momentum swing for bullish investors.

With Bitcoin reaching a new all-time high and the ETH/BTC chart bouncing from a 2021 level, Marzell, an independent crypto trader, highlighted that ETH/BTC currently “shows the best buying opportunity for ETH in 4 years!”.

ETH/BTC eyes daily close above 50-day SMA

With initial optimism brewing, Benjamin Cowen, a crypto technical analyst, pointed out that, for the ETH/BTC trend to bottom, the trading pair needs to close a daily position above the 50-day simple moving average (SMA) indicator.

ETH/BTC on the 1-day chart. Source: TradingView

As illustrated in the chart, ETH/BTC has been under the 50-day SMA for most of 2024, with only brief spells above the indicator in Q1. A daily close above 0.04 would lead to a break of structure (BOS), potentially triggering a market reversal for the ETH/BTC chart.

Meanwhile, Freddy, an anonymous market analyst, remained on the fence and noted,

“Every single ETHBTC pump over 5% marked a local top, this year (except August)”

Related: Why is Ethereum (ETH) price up today?

TOTAL3 hits key resistance along ETH, ETHBTC

CryptoChille, a technical analyst, observed that the ETH, ETHBTC, and the TOTAL3 daily chart uniformly test a key resistance level. The TOTAL3 market cap represents all crypto assets, excluding Bitcoin and Ethereum, so it is a pivotal chart for other altcoins.

From a technical perspective, the trading pair ETH/BTC also exhibits a significant monthly bullish divergence. With the relative strength index and Stochastic RSI reversing from an oversold region, the probability of a sustained uptrend increases based on historical outcomes.

ETH/BTC on the monthly chart. Source: TradingView

Related: Ethereum holder turns $38K into $30M after 8 years

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article first appeared at Cointelegraph.com News

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Written by Outside Source

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