The price of Ethereum rises by 50 percent against Bitcoin in one month
August 7, 2022 9:30 PM
A bearish pattern is being painted by the rise in the ETH/BTC pair, signaling a possible correction.
As euphoria around the upcoming network upgrade "the merge" grows, Eth's native token has continued in an uptrend against BTC.
ETH at multi-month highs against BTC
ETH/BTC surged to a high of 0.075 in the day, being August 6, following a 1.5% move to the upside on the daily chart. However, the gains of the pair occured as part of a bigger rebound trend which began a month ago at 0.049, approximating to 50% gain.
Due to the merge, the ETH/BTC recovery has turned up, having Ethereum switch from proof-of-work (PoW) mining to proof-of-stake (PoS).
The "rising wedge" of Ethereum hints a sell off
Potential losses supposedly awaits ETH, as ETH/BTC draws a hard to doubt rising wedge.
Rising wedge is a bearish reversal pattern which happens when the price trends higher within a range carved out by two rising trendlines. The wedge is broken after price goes below the lower trendline by a distance of the structure's height.
However, further increase in bearish divergence risk; is a declining volume and R.S.I (Relative Strength Index) against a rising ETH/BTC. This further confirms the bearish setup of the wedge for a target of 0.064 BTC or 11% down from today's (at the time of writing) price.
Ether looks stronger vs. dollar
Technical analysis indicates a brighter picture for ETH against the Dollars(U.S). Due to a bullish reversal pattern, the possibility of a 10% breakout for Ethereum vs U.S Dollars looks strong in August.
Looking at a four hour chart, a double bottom has been carved out on the ETH/USD. Due to two lows created, followed by a turnaround in direction from downtrend to uptrend, this pattern looks like the letter "W". It is illustrated below.
The pattern of a double bottom is resolved after price moves above its resistance level and, by technical analysis rule, increases in distance as far as the distance between the initial bottom and the resistance.
Ethereum, as a result, could run towards $1,940 in the month of August, which would be a 10% increase from today's price.