Ethereum price rises by 50% against Bitcoin in one month — but there’s a catch

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Ethereum price rises by 50% against Bitcoin in one month — but there's a catch
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Ether (ETH), Ethereum’s native token, has been persevering with its uptrend against Bitcoin (BTC) as euphoria round its upcoming community improve, “the Merge,” grows.

ETH at multi-month highs against BTC

On the every day chart, ETH/BTC surged to an intraday excessive of 0.075 on Aug. 6, following a 1.5% upside transfer. Meanwhile, the pair’s positive aspects got here as a a part of a broader rebound development that began a month in the past at 0.049, amounting to roughly 50% positive aspects.

ETH/BTC every day price chart. Source: TradingView

The ETH/BTC restoration in half has surfaced as a result of Merge, which may have Ethereum swap from proof-of-work (PoW) mining to proof-of-stake (PoS).

Ethereum’s “rising wedge” suggests sell-off

From a technical perspective, Ether stares at potential interim losses as ETH/BTC paints a convincing rising wedge. 

Rising wedges are bearish reversal patterns that happen when the price traits greater inside a vary outlined by two rising, converging trendlines. As a rule, they resolve after the price breaks under the decrease trendline by as a lot because the construction’s most peak.

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ETH/BTC every day price chart that includes “rising wedge” breakdown setup. Source: TradingView

Moreover, a declining volume and relative strength index (RSI) against a rising ETH/BTC further increases bearish divergence risks. This gives weight to the wedge’s bearish setup for a target of 0.064 BTC, or down 11% from today’s price.

Ether looks stronger vs. dollar

Meanwhile, technicals paint a brighter picture for Ethereum against the U.S. dollar. The potential of a 10% breakout for ETH/USD looks strong in August due to a classic bullish reversal pattern.

Related: Decentralized finance faces multiple barriers to mainstream adoption

On a four-hour chart, ETH/USD has formed what appears to be a “double backside.” This pattern resembles the letter “W” due to two consecutive lows followed by a change in direction from downtrend to uptrend, as illustrated below.

ETH/USD four-hour price chart featuring “double backside” breakout setup. Source: TradingView

Meanwhile, a double bottom pattern resolves after the price breaks above its common resistance level and—as a rule of technical analysis—rises by as much as the distance between the first bottom and the resistance. 

As a result, ETH could rally toward $1,940 in August, up 10% from today’s price.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer entails danger, you must conduct your personal analysis when making a resolution.

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