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Ethereum is gaining ground vs Bitcoin Amid the crypto market rout

ETH/BTC is rallying to put its ‘ascending triangle’ pattern to the test for a bullish breakout.
Despite the present crypto market crash, Ethereum’s native token Ether (ETH) has gained stronger versus its competition for first place, Bitcoin (BTC). Can the ETH/BTC pair maintain its upward trend in the next months? Let’s have a look at the graphs.

Ethereum has reduced its year-to-date losses in comparison to Bitcoin

Between the low of 0.0720 on May 9 and the high of 0.0759 on May 10, ETH/BTC gained 5.5 %. ETH also recovered nearly 9.75 %against the US dollar within the same period, and Bitcoin had a similar upward retracement.

The gains across the pairings came following a brutal selloff over the previous 24 hours. Ether fell to its lowest level since January 2022, and Bitcoin fell below $30 000(R 487k) for the first time since July 2021.

The situation was similar in traditional markets, with the S&P 500 (SPX) index in the United States falling 3.2% to its lowest level in 2022.

On the other side, the dollar reached a two-decade high, reestablishing its status as a “safe-haven” currency in times of market volatility. Furthermore, demand for cryptocurrency equivalent USD-pegged stablecoins increased at a similar rate.

The technicals of the Ethereum price point to a breakout

With its recent increases, ETH/BTC has come very close to testing its multi-month horizontal trendline as resistance, which appears to form an “ascending triangle” pattern.

Ascending triangles are often trend continuation patterns, which means they send the price in the direction of the previous trend.

A strong breakout above the triangle’s top horizontal trendline, according to technical analysis, moves traders’ profit target to a length equal to the structure’s maximum height.

ETH/BTC is looking for a similar breakout move over its horizontal trendline resistance near 0.110 BTC, which is up more than 50% from the price on May 10.

In the event of an upside rejection at the horizontal trendline, ETH/BTC could follow a pullback move towards the triangle’s rising lower trendline, which also coincides with its 50-week exponential moving average (50-week EMA; the red wave) near 0.067. This is an 11.25% decrease from the price on May 10.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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