Here’s the $ETH/BTC chart on the 4H TF.
As you can see ETH has appreciated noticeably against $BTC. Yet another cryptocurrency that hasn’t gotten drowned by the $BTC flogging quite as hard as $BTC itself as. However, don’t let this fool you into thinking that $ETH hasn’t taken quite a beating.
So, we got two seemingly conflicting charts here, right? We got the $ETH/USD chart where ETH looks like it’s nowhere near breaking that upper resistance and then we have the $ETH/BTC chart where $ETH looks like it’s ready to break that downtrend at any moment here (12H TF). So, which one is valid?
Here’s how you have to look at this, and this is an untouched area of crypto, so I’m going to put you guys onto game:
The price of a crypto in relation to $BTC will always be more impactful than its price in relation to $USD. However, both charts must be accounted for. You have to do the work and figure out how to fit both puzzle pieces within each other to create the full picture of what’s going to happen.
Here’s that $ETH/BTC pairing again:
If $ETH breaks this downtrend for $BTC (logarithmic chart here 12H TF), you should expect more appreciation in relation to $BTC (it needs to really break the northside of this downtrend with volume too, no weak shit).
Even if $BTC shits the bed entirely, expect the USD value to go up regardless. In fact, the more that BTC depreciates against USD after $ETH breaks trend, the more that $ETH will skyrocket in its $BTC appreciation.
So What Does This Look Like on the USD Charts?
Personally, I’d expect that the $ETH price will hit that $890 mark, which is detailed by the 50% retracement level shown below:
Why the Price Gain for Ethereum?
This is a great question.
The news posted above may be the primary catalyst for the price gain that we’ve seen.
Thus, it’s possible that this price gain will be short-lived.
Remember, the scenarios that I posted above are only in play if $ETH continues to see continual price increases.
From what I see of the volume, it’s been increasing steadily. However, this was accompanied by a drop in the price. So, the volume should be taken with a grain of salt.
There’s no telling where the $ETH price is going at this point. This is one that I would sit on and wait. I don’t think that there’s a definitive action that must be taken until more information is released.