- Ethereum has finally broken its trend of underperforming against Bitcoin, with crypto’s recent breakout above $ 700 allowing it to gain ground on the ETHBTC pair
- This strength appears to be increasing, as the crypto has yet to face harsh rejection around its recent highs, despite Bitcoin’s potential high of $ 28,500.
- BTC’s ongoing consolidation phase could prove to be very bullish for ETH and other altcoins
- A trader also points to ETH’s reaction to a key resistance level he has formed against Bitcoin, noting that a break above could give it a serious advantage.
- It is climbing above, which could mean that the rise is imminent today
Bitcoin has rallied independently of the broader market over the past few weeks, but that trend is starting to change as Ethereum shows increasing signs of technical strength.
One trader explained in a recent tweet that he now sees a higher near-term move with ETHBTC hitting a crucial resistance level that it is overcoming.
If it can easily break above that level, ETH could continue to climb as Bitcoin consolidates around $ 27,000.
Ethereum climbs as Bitcoin enters consolidation phase
At the time of writing, Ethereum is trading lightly at its current price of $ 730. This is pretty much where he bargained for the last day.
ETH was able to recover from lows of less than $ 700 set last night when the whole market sold off due to the massive drop in XRP.
It quickly recovered from those lows and continued to gain ground against Bitcoin in the last few hours.
Trader: ETHBTC peaks above crucial level
A seller Explain in a recent tweet that Ethereum is set to post a breakout above a key resistance level in BTC that it is watching closely.
“Key ETH test coming here, another bearish test or last barrier before the moonlight? I am currently far from the reaction to block H4. If ETHBTC can clear the 0.0275 level, it should rip. “
Image Courtesy of Mayne. Source: ETHBTC on TradingView.
Since the publication of this chart, Ethereum has broken above this BTC level and is posting a strong close above.
This could be a sign that its uptrend has only just begun and that it is about to gain ground against Bitcoin.
Featured image from Unsplash. Charts from TradingView.