- The ETH/BTC pair evolves within the 0 support,028₿.
- Technical indicators have not yet shown clear signs of a bullish turnaround.
- The ETH/BTC could evolve in a long-term inverted head-shoulder pattern.
The chart of the ETH/BTC pair has reached an important support zone, but has yet to show any sign of a bullish reversal. The price may continue to fall before eventually reversing its downward trend.
The day chart for ETH/BTC shows that the price has been declining from its peak at 0.04₿ on September 1, having fallen to the 0.028₿ area.
This zone was initially used as a support in 2018 and 2019, before the price eventually fell below it. It put up resistance in July 2019, and the price then exceeded it. This same zone is now likely to be used as a support zone.
Technical indicators are turning bearish but have not confirmed a downward trend. The RSI has fallen below 50, but the MACD has not yet moved into negative territory, and the stochastic oscillator has not formed a bearish cross.
The daily chart shows a support zone slightly below 0.026₿.
Similarly, there are no signs of a bullish reversal yet. That said, technical indicators show that the rally is extremely oversold, with the RSI recording its lowest value since December 2019.
That said, the lack of bullish divergence indicates that the price will likely continue to fall, at least in the short term.
Cryptonewton crypto-currency trader @Cryptonewton shared an ETH/BTC chart, which shows a long term and in-progress reversed head-shoulder formation pattern. Once the right shoulder is completed, he predicts an upward movement of up to 0.06₿.
It seems possible that the course is indeed within an inverted head-shoulder figure, but the right shoulder remains incomplete.
The left shoulder shows a dip of 0,0246₿. The course could therefore continue to decline before finally reaching a bottom. This would also be in line with the reading of technical indicators, which have not given any clear signs of a turnaround, despite levels of overselling.
In the case of an advance, the price will probably go up to 0.06₿. This is achieved by projecting the length of the figure onto the breakthrough point. This is also the fibonacci level 0.618 of the entire decline.
Bitcoin dominance rate
Bitcoin’s dominance rate (BTCD) has also increased considerably since the beginning of September. It is, however, approaching an important resistance zone and a downward resistance line in place since September 2019.
Technical indicators show that the rally is oversold but do not give any clear signs of weakness. This indicates that the rate will probably reach the falling resistance line and the 63.3% zone, or the fibonacci level 0.786 of the entire decline.
Knowing that the ETH is the most important altcoin and that a rally of the ETH/BTC pair would lead to a decline of the BTCD, the two graphs line up. The BTCD could rise a little more towards 66.3%, while the ETH/BTC could fall slightly before the trends are reversed.