Ether (ETH), Ethereum’s native token, continues to be ongoing its upward trend against Bitcoin (BTC) as excitement around its approaching network upgrade, “the Merge,” grows.
ETH at multi-month highs against BTC
Around the daily chart, ETH/BTC surged for an intraday a lot of .075 on August. 6, carrying out a 1.5% upside move. Meanwhile, the pair’s gains came as part of a wider rebound trend that began last month at .049, amounting to roughly 50% gains.
The ETH/BTC recovery partly has surfaced because of the Merge, that will have Ethereum switch from proof-of-work (Bang) mining to proof-of-stake (PoS).
Ethereum’s “rising wedge” suggests sell-off
Theoretically speaking, Ether stares at potential interim losses as ETH/BTC paints a convincing rising wedge.
Rising wedges are bearish reversal patterns that occur once the cost trends greater in the range based on two rising, converging trendlines. Usually, they resolve following the cost breaks underneath the lower trendline up to the structure’s maximum height.
Furthermore, a declining volume and relative strength index (RSI) against an increasing ETH/BTC further increases bearish divergence risks. This provides weight towards the wedge’s bearish setup for any target of .064 BTC, or lower 11% from today’s cost.
Ether looks more powerful versus. dollar
Meanwhile, technicals paint a better picture for Ethereum from the U.S. dollar. The potential for a tenPercent breakout for ETH/USD looks strong in August as a result of classic bullish reversal pattern.
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On the four-hour chart, ETH/USD has created what seems to become a “double bottom.” This pattern resembles the letter “W” because of two consecutive lows adopted by a general change in direction from downtrend to upward trend, as highlighted below.
Meanwhile, a dual bottom pattern resolves following the cost breaks above its common level of resistance and—as a guide of technical analysis—rises up to the space between your first bottom and also the resistance.
Consequently, ETH could rally toward $1,940 in August, up 10% from today’s cost.
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