{"id":8217,"date":"2022-11-01T02:56:34","date_gmt":"2022-11-01T02:56:34","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8217"},"modified":"2022-11-01T02:56:34","modified_gmt":"2022-11-01T02:56:34","slug":"ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8217","title":{"rendered":"Ethereum flashes a classic bullish pattern in its Bitcoin pair, hinting at 50% upside"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Ethereum\u2019s native token, Ether (ETH), looks poised to log a major price rally versus its top rival, Bitcoin (BTC), in the days leading toward early 2023.<\/p>\n<h2>Ether has a 61% chance of breaking out versus Bitcoin<\/h2>\n<p>The bullish cues emerge primarily from a classic technical setup dubbed a \u201ccup-and-handle\u201d pattern. It forms when the price undergoes a U-shaped recovery (cup) followed by a slight downward shift (handle) \u2014 all while maintaining a common resistance level (neckline).<\/p>\n<p>Traditional analysts perceive the cup and handle as a bullish setup, with veteran Tom Bulkowski noting that the pattern meets its profit target 61% of all time. Theoretically, a cup-and-handle pattern\u2019s profit target is measured by adding the distance between its neckline and lowest point to the neckline level.<\/p>\n<p>The Ether-to-Bitcoin ratio (or ETH\/BTC), a widely tracked pairing, has halfway painted a similar setup. The pair now awaits a breakout above its neckline resistance level of around 0.079 BTC, as illustrated in the chart below.\u00a0<\/p>\n<p><em>ETH\/BTC weekly price chart featuring a cup and handle. Source: TradingView<\/em><\/p>\n<p>As a result, a decisive breakout move above the cup-and-handle neckline of 0.079 BTC could push Ether\u2019s price toward 0.123 BTC, or over 50%, by early 2023.<\/p>\n<p><em>ETH\/BTC weekly price chart featuring cup-and-handle breakout setup. Source: TradingView<\/em><\/p>\n<h2>Time to turn bullish on ETH?<\/h2>\n<p>Ether\u2019s strong interim fundamentals compared with Bitcoin further improve its possibility of undergoing a 50% price rally in the future.<\/p>\n<p>For starters, Ether\u2019s annual supply rate fell drastically in October, partly due to a fee-burning mechanism called EIP-1559 that removes a certain amount of ETH from permanent circulation whenever an on-chain transaction occurs. <\/p>\n<p><em>Ethereum supply rate post-Merge. Source: Ultra Sound Money<\/em><\/p>\n<p>XEN Crypto, a social mining project, was mainly responsible for raising the number of on-chain Ethereum transactions in October, leading to a higher number of ETH burns, as Cointelegraph previously\u00a0covered.<\/p>\n<p>Over\u00a02.69 million ETH (approximately $8.65 billion) has gone out of circulation since the EIP-1559 update went live on Ethereum in August 2021, according to data from\u00a0EthBurned.info.<\/p>\n<p>It shows that the more clogged the Ethereum network becomes, the higher Ether\u2019s probability of entering a \u201cdeflationary\u201d mode gets. So, a depleting ETH supply may prove bullish, if the coin\u2019s demand rises simultaneously.\u00a0<\/p>\n<p>In addition, Ethereum\u2019s transition to a proof-of-stake consensus mechanism via \u201cthe Merge\u201d has acted as an Ether-supply sucker, given that each staker \u2014 whether an individual or a pool \u2014 is required to lock away 32 ETH in a smart contract to earn annual yields.<\/p>\n<p>The total supply held by Ethereum\u2019s PoS smart contract reached an all-time high of 14.61 million ETH on Oct. 31.<\/p>\n<p><em>Ethereum 2.0 total value staked. Source: Glassnode<\/em><\/p>\n<p>In contrast, Bitcoin, a proof-of-work (PoW) blockchain that requires miners to solve complex mathematical algorithms to earn rewards, faces persistent selling pressure.<\/p>\n<p><strong><em>Related:\u00a0Public Bitcoin miners\u2019 hash rate is booming \u2014 But is it actually bearish for BTC price?<\/em><\/strong><\/p>\n<p>In other words, there is a comparatively higher selling pressure for Bitcoin versus Ether.<\/p>\n<h2>ETH\/BTC needs to break the range resistance<\/h2>\n<p>Ether\u2019s road to a 50% price rally versus Bitcoin has one strong resistance area midway, acting as a potential joy killer for bulls.<\/p>\n<p>In detail, the 0.07 BTC\u20130.08 BTC range has served as a strong resistance area since May 2021, as shown below. For instance, the December 2021 pullback that started after testing the said range as resistance resulted in a 45% price correction by mid-June 2022.<\/p>\n<p><em>ETH\/BTC weekly price chart. Source: TradingView<\/em><\/p>\n<p>A similar pullback could have ETH test the 0.057\u20130.052 range as its primary support target by the end of this year or early 2023.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum\u2019s native token, Ether (ETH), looks poised to log a major price rally versus its top rival, Bitcoin (BTC), in the days leading toward early 2023. Ether has a 61% chance of breaking out versus Bitcoin The bullish cues emerge primarily from a classic technical setup dubbed a \u201ccup-and-handle\u201d pattern. It forms when the price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-8217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8217"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8217\/revisions"}],"predecessor-version":[{"id":8219,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8217\/revisions\/8219"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8218"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}