Ethereum’s native token Ether (ETH) has grown stronger against its rival for the top position — Bitcoin (BTC) — despite an ongoing crypto market rout. But can the ETH/BTC pair continue to rally in the coming months? Let’s look at the charts.
Ethereum pares YTD losses vs. Bitcoin
ETH/BTC gained 5.5% between the May 9 low of 0.0720 and the May 10 high of 0.0759. ETH also rebounded by almost 9.75% against the U.S. dollar, and Bitcoin underwent a similar upside retracement in the same period.
The gains across the pairs appeared after a brutal selloff witnessed across the past 24 hours. The drop sent Ether to its worst levels since January 2022 and Bitcoin below $30,00 for the first time since July 2021.
The situation was similar in the traditional markets, with the U.S. benchmark index, S&P 500 (SPX), slumping 3.2% to its lowest level in 2022.
On the other hand, the dollar reached its two-decade high, reinstating its “safe-haven” status in times of market turmoil. Moreover, the cryptocurrency equivalent USD-pegged stablecoins witnessed a similar surge in demand.
$USDT Exchange Outflow Volume (7d MA) just reached a 3-month high of 34,010,868.697 USDT
— glassnode alerts (@glassnodealerts) May 10, 2022
ETH price technicals hint at breakout
Ascending triangles are typically trend continuation patterns, meaning they send the price in the direction of its previous trend.
As a rule of technical analysis, a decisive breakout above the triangle’s upper horizontal trendline shifts traders’ profit target to a length equal to the structure’s maximum height.
Conversely, an upside rejection near the horizontal trendline could have ETH/BTC pursue a pullback move towards the triangle’s rising lower trendline, also coinciding with its 50-week exponential moving average (50-week EMA; the red wave) near 0.067. That is down 11.25% from May 10’s price.
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