ETH-BTC Chart Points to Ether Leadership Ahead
While bitcoin appears to be pulling the broader market higher right now, ether may take the lead in the coming weeks.
The ether-bitcoin (ETH/BTC) weekly chart shows a bull pennant – a technical pattern marked by converging trendlines, indicating an impending continuation of the ether-bitcoin ratio’s upward move from 0.023 to 0.08 seen early this year.
A move above the upper trendline would confirm a breakout or shift in market leadership toward ether.
“It does look like a bull pennant,” Daniel Kukan, senior cryptocurrency trader at Swiss-based Crypto Finance AG, told CoinDesk in a Telegram chat. “I believe ether can take the lead towards the year-end against BTC.”
“We see levels of 0.08 in the near term,” Kukan added. The ratio was trading near 0.0705 at press time on Binance.
A bull pennant is formed when an initial higher move is followed by a narrowing price range or a consolidation phase. This consolidation is usually resolved to the higher side, allowing for an extension of the price rally.
The pattern is negated if the consolidation ends with a downside break. Recent flows in both the spot and options market support the bullish case in ether.
Bitcoin was trading at record highs near $68,200 at press time, while ether was changing hands at $4,800.
“ETH was dragged up to an all-time high at $4,740 [last week], but it was actually BTC flow driving the move,” Adam Farthing, chief risk officer at crypto liquidity provider and over-the-counter trader B2C2 Japan, said in a weekly note published Monday.
Omkar Godbole is the senior reporter on CoinDesk’s Markets team.
Subscribe to First Mover, our daily newsletter about markets.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.