The ETH/BTC trading pair (Ethereum against Bitcoin) enters an interesting phase, as current technical patterns indicate a strong potential rise in the price of Ethereum against Bitcoin in the coming days or weeks.
Supporting technical indicators
Double Bottom Pattern
On the daily timeframe, we can observe the formation of a 'double bottom' pattern, which is considered one of the strongest bullish reversal patterns. This pattern reflects the price's attempt to break the support twice without success, enhancing the likelihood of a new upward movement.
Breaking through the downward trend line
After a long period of decline, the price managed to break through the downward trend line that has been pressuring ETH/BTC for months. This breakout boosts confidence in the return of buyers to control.
Increase in trading volumes
In conjunction with the upward movements, we notice a significant increase in trading volume, indicating the entry of new liquidity into the market and supporting the buying movement.
Positive moving averages crossover
The crossover of the 50-day moving average with the 200-day moving average upwards indicates the beginning of a bullish trend from a medium to long-term perspective.
Fundamental factors supporting the rise of ETH
The upcoming launch of new updates on the Ethereum network such as 'Proto-Danksharding' boosts investor confidence in the network's future.
The increased use of decentralized applications (dApps) on the Ethereum network raises the demand for the currency.
The recent decrease in gas fees contributes to attracting more users and developers.
Technical levels to watch
Level Interpretation 0.052 BTC Previous resistance, if broken, we may see acceleration in the rise 0.048 BTC New support that must hold to confirm the upward trend 0.056 BTC Potential target if the upward momentum continues
Summary
Technical and fundamental analyses indicate that the ETH/BTC pair may be on the verge of a new upward movement, supported by strong reversal patterns and increasing momentum. However, it remains essential to closely monitor news and technical developments, as well as to manage risks effectively.
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$ETH
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ahmed saleh
