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.
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.
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.
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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.
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.
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