Ethereum’s native token Ether (ETH) continues its multi-month downtrend against Bitcoin (BTC) in March, rising 5.5% versus the latter’s 19.5% gains on a one-month time frame to date. date.
Bitcoin eclipses Ethereum in the midst of the banking crisis
As of March 23, the ETH/BTC pair is down around 9% month-to-date at 0.0633 satoshis, while staying on course to record its worst month since September 2022, when it fell 11.75%.
From a fundamental perspective, traders preferred Bitcoin to Ether, Hoping it would protect them of the current banking turmoil in the United States and other parts of the world. The narrative has gained momentum in recent weeks as Wall Street investors like Cathie Wood they see in Bitcoin a potential “flight to safety” asset.
‼️CATHIE WOOD: #Bitcoin‘s response to the banking crisis is the most dramatic example that innovation solves problems. #Bitcoin was a flight to safety. pic.twitter.com/1lTD2Drto3
— Bitcoin Archive (@BTC_Archive) March 21, 2023
As a result of growing speculation, Bitcoin outperformed traditional assets after March 8, when signs of trouble appeared at Silicon Valley Bank. In doing so, BTC also outperformed the combined altcoin market, including Ethereum.
ETH paints a bullish pattern against BTC
However, from a technical perspective, Ethereum is positioned for a comeback against Bitcoin.
At least two technical indicators raise the possibility of the ETH/BTC pair rallying strongly in the coming weeks.
First, the pair’s three-day Relative Strength Index has fallen below 30, which technical analysts consider an “oversold” zone.
Secondly, the fall in the price of Ether against Bitcoin has placed its price close to its ascending support level (buy zone in the following chart).
A similar scenario in the June-July 2022 session preceded a roughly 60% rally towards the ETH/BTC pair’s downtrend line resistance (sell area on the chart above). If the fractal holds, the pair could rally towards the same resistance level in June 2023.
In other words, Ether has a good chance of rallying more than 15% to around 0.075 BTC. Conversely, a break below the uptrend line support will invalidate the bullish pattern.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.