Ethereum price analysis against Bitcoin; The probability of a jump on the threshold of a network update
The price of Ethereum against Bitcoin has increased by more than 40% in the last 40 days. Now, on the eve of the network update of this digital currency, there is a possibility that the price in the market of this currency pair will experience a further jump.
To Report Cointelegraph, the price of Ethereum against Bitcoin has recovered about 40% since reaching the bottom of 0.049 units on June 13 (June 23). Currently, the price of ethereum compared to bitcoin is at the peak of the last two months, and as can be seen from the technical indicators, this growth can continue in the following days.
In the 4-hour view of the Ethereum/Bitcoin market, a “cup and bunch” pattern can be seen, which starts from July 18 (July 27). This pattern is generally formed when the price first experiences a decline and then a rebound in the shape of the English letter “U” or a cup. This return is followed by another correction and the price fluctuation in a descending channel forms the handle of this cup.
If all goes well, the pattern will eventually lead to a price rise as high as the previous low or cup high. On the chart below, something similar to the cup and handle pattern that we explained about can be seen.
Also read: Getting to know 10 technical analysis chart patterns that every trader should know
The price is currently still fluctuating within the range of this pattern; But it can continue to reach the neckline resistance at 0.071 units. After that, a break of the neckline could push the price of ETH to 0.077 units, which is 12% higher than today’s price.
Tom Bulkowski, a veteran financial market investor, says the pattern successfully reaches its price target 61 percent of the time.
This bullish outlook drawn for Ethereum stems from the imminent change of the digital currency’s network mechanism from proof-of-work to proof-of-stake, which is expected to take place this September.
Meanwhile, cryptocurrency analyst Michaël van de Poppe said that if price momentum picks up in the coming weeks, Ethereum’s value against Bitcoin may rise due to the upcoming update.
Van Depop expects the price of Ethereum to face resistance at the level of 0.072 units against Bitcoin, and if the price declines, he expects 0.0645 and 0.057 to be the next supports for this currency pair.
On the other hand, the update of Ethereum can also have risks for the price of this digital currency, among which we can mention the occurrence of technical problems during the update, the postponement of the date of this hard fork, and also the disagreement of the main developers over its implementation. Like the incident that caused the Ethereum network to fork in 2021.