Ethereum ($ETH) is one of the best-performing of the major cryptocurrencies over the last 24-hours. With older altcoins $XRP and $ADA also putting on great gains over recent days, could $ETH be about to breakout, and also start reversing its long downward trend against $BTC?
Is the latest surge for ETH/BTC just a retest of resistance?
Source: TradingView
The $ETH price has followed a downward trend against its $BTC pair (ETH/BTC) since all the way back in 2017. That is a long, long time for the number 2 cryptocurrency by market capitalization.
That said, for the 2021 bull market, $ETH did make some big inroads into wiping out its losses against $BTC. However, since 2022, there has been another long period of downwards movement for $ETH, which culminated in a nasty drop out of the bottom of a 2-year descending channel.
This fall in the ETH/BTC price also took it below a major support level at 0.0335 BTC. With the Stochastic RSI indicators on the weekly having crossed back down, the latest $ETH fight-back might just be a retest of the major support – turning it into strong resistance.
$ETH price heads to potential wedge pattern breakout
Source: TradingView
Nevertheless, on the weekly time frame for the ETH/USD pair, things are looking decidedly rosier. The $ETH price is within a wedge pattern, and given that this is a continuation of an upward trend, the price might be expected to break out of the top of this pattern.
One thing that is perhaps not in $ETH’s favour is that the Stochastic RSI indicators are starting to roll over. This does not necessarily mean that upside price momentum is definitely going to desert $ETH, because the indicators could still climb higher, but it is certainly something for $ETH bulls to bear in mind.
ETH/SOL is perhaps the biggest concern for $ETH bulls
Source: TradingView
Perhaps of even more concern for the $ETH bulls is the SOL/ETH price. After following a range for the most part of 2024, the price broke out in favour of $ETH’s foremost layer 1 competitor. An all-time high for $SOL against $ETH came with the breakout, and the price is still ascending.
The Fibonacci extension levels are potential targets above. The 1.618 is at 0.09 ETH, and the 2.618 is at 0.141. As this bull market unfolds, and having already made huge gains against $ETH, the $SOL price is well-positioned to go even higher.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.