The original Ethereum token (Ether)ETH(Rebound 40% against Bitcoin)BTC) after hitting a local low of 0.049 on June 13. Now, the ETH/BTC pair has reached a two-month high and could extend its rally in the coming weeks, according to a classic technical pattern.
ETH draws cup and handle pattern
Specifically, ETH/BTC was forming “cup and handleOn his lower time frame charts since July 18th.
The cup and handle setup usually shows up when the price drops and then bounces back in what appears to be a U-shaped rebound, which looks like a “cup.” In the meantime, the recovery leads to a pullback movement, as price trends fall within a descending channel called the ‘handle’.
The pattern improves after the price rises to a volume roughly equal to the previous low. The chart below for ETH/BTC shows a similar bullish technical setup.
Notably, the pair is now trading lower within the handle range but could continue to recover towards the neckline resistance near 0.071 BTC. Next, a decisive cup and a break above the neckline could push ETH/BTC to 0.072, 12.75% higher than today’s price.
The success rate of the cup and handle pattern in hitting the profit target is 61%, according to Veteran Investor Tom Bolkowski.
The bullish setup for ETH/BTC is also taking cues from the Ethereum network’s transition from Proof of Work (PoW) to possible Proof of Stake (PoS) via “merging” scheduled for mid-September.
Meanwhile, market analyst Michael van de Poppe said Says That Ether could see further upside against Bitcoin due to the consolidation hype with momentum building in the coming weeks.
Basically on a few levels ETH dollar.
Meet resistance at 0.0725 BTC dollars.
Overall, we expect more momentum towards consolidation in September. pic.twitter.com/QpmkyTwjyb
– Michael van de Poppe (@CryptoMichNL) 23 July 2022
Van de Poppe expects ETH/BTC to test 0.072, cup and handle profit target, as temporary resistance while holding 0.0645 or 0.057 as support.
On the contrary, the range of risks for Ethereum with the Merge update includes the possibility of Technical problemOr delays or even a controversial hard fork. For example, error has split The Ethereum chain during the 2020 network upgrade.
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