Ethereum to Soar as ETH/BTC Ratio Signals Bullish Breakout, as per Analyst’s Prediction

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The recent events in the cryptocurrency market signal a notable development for Ethereum (ETH), the world’s second largest cryptocurrency. The trajectory in its valuation suggests a potential increase in the coming weeks and months, as foretold by an analyst’s reading of a technical candlestick arrangement. The illuminating metric used was the ETH/BTC ratio, which compares the performances of the two largest cryptocurrencies, Ethereum and Bitcoin.

This indicator was resting on a multilevel support trend line, which as per the analyst, traditionally heralds a spike in altcoin prices. Over the last two years, despite Bitcoin’s solidity, the ETH/BTC ratio manifested a descending channel on the monthly chart, paving the way for an upturn trend.

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Moreover, the occurrence of increasing lows over time implies the bullish market soaking up the selling pressure, thereby maintaining consistent higher price levels. Upon observing the monthly trend behavior, a bullish reversal pattern was evident for this month, forecasting a growth-driven momentum for Ethereum. Regardless of the relatively lesser trading volumes recorded, as compared to those registered in July 2022, ETH prices are anticipated to soar.

Set to close as bullish for June as well, this pattern could pave the runway for further ascension. The same trend may be seen to reiterate the early gains of 2021, and with an additional 40% upsurge against Bitcoin, Ethereum could close above 0.08 BTC. This potential increase could thrust Ethereum closer to its 2017 highs.

Despite Ethereum’s ascension prospects, it didn’t overshadow Bitcoin’s steadiness. Ever since September 2022, Bitcoin has consistently outperformed Ethereum, nullifying the gains of 2020 and 2021, which shaped a descending channel. However, this pattern also showed diminished levels of participation.

Even though the closing above 0.08 BTC would be a persuasive evidence of bull strength, the market forecasts are still buoyant for Ethereum. The inauguration of spot Ethereum exchange-traded funds (ETFs) is projected to boost Ethereum’s demand, potentially aiming for a $4900 benchmark.

Since its inception and throughout to the final sanctioning of spot Bitcoin ETFs in January, the digital asset market had predominately recognized the supremacy conferred upon Bitcoin by the United States Securities and Exchange Commission (SEC). This preferential bias led institutions to choose Bitcoin as a go-to asset, with entities like Fidelity and Blackrock venturing on Bitcoin via spot ETFs, channeling billions into the asset over the past four months.

However, tables turned last week when SEC extended its approval to list all spot Ethereum ETFs, eliminating ETH staking from the 19b-4 files. This notable development is of enormous significance for the Ethereum network and platform, symbolized by almost a 30% surge in ETH prices, surpassing Bitcoin.

Ethereum’s rally is thus expected in the weeks to come. While its market reception remains to be seen, it will likely exemplify the rally of Bitcoin prices post mid-January 2024, potentially breaking the $4100 record and even surpassing the all-time highs of 2021.