Ethereum price rises by 50% against Bitcoin in one month — but there’s a catch

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Ether (ETH), Ethereum’s native token, has been persevering with its uptrend towards Bitcoin (BTC) as euphoria round its upcoming community improve, “the Merge,” grows.

ETH at multi-month highs towards BTC

On the each day chart, ETH/BTC surged to an intraday excessive of 0.075 on Aug. 6, following a 1.5% upside transfer. In the meantime, the pair’s positive aspects got here as part of a broader rebound pattern that began a month in the past at 0.049, amounting to roughly 50% positive aspects.

ETH/BTC each day value chart. Supply: TradingView

The ETH/BTC restoration partially has surfaced because of the Merge, which could have Ethereum swap from proof-of-work (PoW) mining to proof-of-stake (PoS).

Ethereum’s “rising wedge” suggests sell-off

From a technical perspective, Ether stares at potential interim losses as ETH/BTC paints a convincing rising wedge

Rising wedges are bearish reversal patterns that happen when the worth developments greater inside a variety outlined by two rising, converging trendlines. As a rule, they resolve after the worth breaks under the decrease trendline by as a lot because the construction’s most top.

ETH/BTC each day value chart that includes “rising wedge” breakdown setup. Supply: TradingView

Furthermore, a declining quantity and relative energy index (RSI) towards a rising ETH/BTC additional will increase bearish divergence dangers. This provides weight to the wedge’s bearish setup for a goal of 0.064 BTC, or down 11% from at this time’s value.

Ether seems to be stronger vs. greenback

In the meantime, technicals paint a brighter image for Ethereum towards the U.S. greenback. The potential of a ten% breakout for ETH/USD seems to be robust in August because of a basic bullish reversal sample.

Associated: Decentralized finance faces multiple barriers to mainstream adoption

On a four-hour chart, ETH/USD has fashioned what seems to be a “double backside.” This sample resembles the letter “W” because of two consecutive lows adopted by a change in route from downtrend to uptrend, as illustrated under.

ETH/USD four-hour value chart that includes “double backside” breakout setup. Supply: TradingView

In the meantime, a double backside sample resolves after the worth breaks above its widespread resistance stage and—as a rule of technical evaluation—rises by as a lot as the space between the primary backside and the resistance. 

Because of this, ETH may rally towards $1,940 in August, up 10% from at this time’s value.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a choice.