Ethereum faces 6-month lows versus Bitcoin — Will ETH price rebound?


Ethereum’s native token, Ether (ETH), continues its multimonth downtrend towards Bitcoin (BTC) in March, rising 5.5% versus the latter’s 19.5% positive factors on a month-to-date timeframe.

Bitcoin overshadows Ethereum amid banking disaster

As of March 23, the ETH/BTC pair was down about 9% month-to-date to 0.0633 whereas staying heading in the right direction to document its worst month since September 2022, when it fell 11.75%.

ETH/BTC month-to-month value chart. Supply: TradingView

From a elementary perspective, merchants most well-liked Bitcoin over Ether, hoping it would protect them from the continuing banking turmoil within the U.S. and different elements of the world. The narrative gained momentum in current weeks as Wall Avenue traders like Cathie Wooden see Bitcoin as a potential “flight to security” asset.

On account of the rising hypothesis, Bitcoin outperformed conventional property after March 8, when indicators of trouble appeared at Silicon Valley Bank. In doing so, BTC also fared better than the altcoin market combined, including Ethereum.

Bitcoin, S&P 500, gold and altcoin market performances in March. Source: TradingView 

ETH paints bullish fractal vs. BTC

However, from a technical perspective, Ethereum is positioned for a comeback versus Bitcoin.

At least two technical indicators pose the possibility that ETH/BTC will rebound sharply in the coming weeks.

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First, the pair’s three-day relative energy index has dropped beneath 30, which technical analysts take into account an “oversold” space.

Second, Ether’s drop versus Bitcoin has landed its value close to its ascending assist degree (purchase zone within the chart beneath).

ETH/BTC three-day value chart. Supply: TradingView

The same situation within the June–July 2022 session preceded an roughly 60% rally towards ETH/BTC’s descending trendline resistance (promote zone within the chart above). If the fractal performs out, the pair may rally towards the identical resistance degree by June 2023.

In different phrases, Ether has a good probability of rebounding by greater than 15% to round 0.075 BTC. Conversely, a break beneath the ascending trendline assist will invalidate the bullish fractal.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.