Ethereum may have bottomed against Bitcoin says renowned technical analyst
One of the most prominent cryptocurrency technical analysts, Peter Brandt, thinks that Ethereum may have bottomed against Bitcoin.
Bottoming against BTC
Ethereum has been on a steady decline for over the last two years after peaking at nearly 15.3 million satoshis on June 13, 2017. Since then, the cryptocurrency has been making a series of lower highs and lower lows without any signs of recovery.
Although ETH experienced a significant bullish impulse through the first half of this year, it recently reached a new low of 1.6 million satoshis. This swing low could be the first sign that Ethereum is constructing a bottom, according to 40-years trading veteran Peter Brandt.
On Oct. 7, Brandt noticed that an ascending triangle developed on ETH/BTC 1-day chart. This is considered a bullish pattern that estimates a 15 percent upswing (determined by the height of the triangle) that could take this crypto to approximately 2.5 million satoshis.
At the moment, Ethereum is testing the 2.2 million satoshis resistance level. Breaking above this price hurdle could increase the buying pressure behind ETH, leading to a validation of the bullish scenario presented by the renowned analyst.
When looking at ETH/BTC 1-week chart, a series of support and resistance levels can be drawn. These price points help identify the different barriers in a bearish or bullish move that could pause the continuation of a trend due to unusually high supply or demand.
If Ethereum is indeed bottoming out and preparing for upward momentum it could find resistance on its way up around 2.7, 3.7 and 5.2 million satoshis. Conversely, if it moves below the 1.7 million satoshis support level it will likely try to test the next level of support at 1.2 million satoshis.
Consolidating against USD
As Ethereum signals a possible bottom against Bitcoin, it continues consolidating against its U.S. dollar pair.
ETH/USD is currently sitting in a no-trade zone. This area is defined by the upper and lower Bollinger band that sit around $182.80 and $166.70, respectively. Trading within these resistance and support levels poses high risk exposure. Thus, as the Bollinger Bands continue squeezing on ETH/USD’s 12-hour chart, it will be wiser to wait for a clear move outside of this range.
A break above $182.80 could allow Ethereum to surge up to the $195 or $205 resistance level. Conversely, a move below $166.70 could take this cryptocurrency to test the next levels of support around $157 and $147.
After plummeting nearly 90 percent from a high of 15.3 million satoshis to a low of 1.6 million satoshis, Ethereum could have hit bottom against BTC. If confirmed, this crypto could soon rise 15 percent to reach 2.5 million satoshis, which is based on an ascending triangle pattern that is forming on its 1-day chart. This could be taken as the first sign that ETH/BTC is bound to start a new uptrend.
Along the same lines, against the U.S. dollar Ethereum appears to be on the verge of a major move. On the upside, it could surge to around $205. But, if the selling pressure behind it increases it could drop to $147.