Ethereum price surges recording a 2 month consistent run against Bitcoin- for how long can it maintain this consistency?
ETH, the conventional Ethereum token is experiencing an extensive price surge which has heightened its yielding risk against Bitcoin.
This current rally has moved ETH price to a strong resistance ranking, raising its pullback risks on Bitcoin.
Ether (ETH) has remarkably avoided a despairing technical system beating Bitcoin (BTC) once again in what is now a consistent two month high record
ETH price bear flag nullified
Since the July 14 announcement by Ethereum developers that by September the expected switch to proof of stake will happen an occurrence referred to as the Merge, the ETH/BTC pair nullified its rampaging “bear flag” pattern.
This announcement has caused ETH/BTC to rally by an impressive 22% maxing to an all time of 0.067. This is its best run since May 25.
The implication of this impressive rally by ETH/BTC is that since its June 13 abysmal 0.049 low, it has now recorded a 37% net retracement gain.
Ether tests its core inflection points
The essential elements sparked by launch of the Merge may see ETH/BTC tilt towards 0.072 to 0.076. This ambit influenced the January to March & May resistance. Ether bulls should identify this as their next top target.
It is not all uhuru however. Just around the stiff resistance confluence ETH/BTC has indicated a diminishing upside momentum.
These indications are a declining trend line resistance, the Fibonacci retracement line somewhere around 0.066 BTC and the support turned resistance ranging from 0.064 to 0.068 BTC.
Furthermore the momentum oscillator indicator which is the current strength index of ETH/BTC shows it is transcending into a situation of buyers transacting in excessive quantities. This always poses high sell off risks.
Stakeholders and industry analysts have deliberated on whether this prevailing situation is sustainable. “Altcoin Sherpa” which is a renowned independent market analyst noted on July 18 that the current ETH/BTC rally cannot be sustained.
What this means is that if the inflection resistance point sees a 9.5% fall, ETH/BTC may record a 0.06 reversal by September. This 0.06 BTC ranking will coincide with a 0.236 Fibonacci line.
This analysis are based on the author’s personal views. Investors should endeavour to conduct rigorous personal research to make decisions as all investments involve risks.
Originally reported in https://cointelegraph.com/news/ethereum-price-breaks-out-hits-2-month-high-versus-bitcoin-is-the-rally-sustainable
