ETH/BTC pair shows golden cross formation with 20-week EMA crossing above 50-week EMA, mirroring the 2020 pattern that preceded Ethereum’s massive outperformance against Bitcoin.
By Godfrey Benjamin
Editor Marco T. Lanz
Updated
3 mins read
The performance of Ethereum ETH $4 297 24h volatility: 0.1% Market cap: $518.60 B Vol. 24h: $27.17 B against Bitcoin BTC $111 941 24h volatility: 0.6% Market cap: $2.23 T Vol. 24h: $37.10 B has flashed an unexpected move, hinting at a possible price breakout. It displayed a historic signal that preceded one of its strongest rallies ever in the past.
According to the ETH/BTC weekly chart, the 20-week exponential moving average (EMA) is set to cross above the 50-week EMA. The last time such a Golden Cross was seen was in early 2020. This was just before Ethereum’s price outperformed Bitcoin by almost 250% in the following year.
Coincidentally, this same setup has appeared at a time when ETH is bouncing strongly from its multi-year accumulation zone at around 0.020–0.025 BTC. This position reinforces its role as a long-term support base. The ETH/BTC pair is currently testing its 200-week EMA, around 0.045 BTC. This level is known to have triggered bearish rejections in both 2021 and the present move.
The ETH/BTC ratio has just flipped into golden cross in favor of Ethereum | Source: Bitcoinwalah
For 2021, ETH struggled to clear this resistance but later broke higher. This prompted the acceleration of its climb toward the 0.08–0.09 BTC area. It is not yet clear if a similar path may be unfolding this time around. However, it is worth noting that the weekly RSI’s overbought reading hints at a possible pullback before the coin makes any breakout attempt.
At press time, Ethereum traded at $4,342.30, with a 1.73% increase in the last 24 hours. Its market cap is pegged at $528.05 billion, while its 24-hour trading volume is resting at $26.08 billion. This suggests that traders are quite enthusiastic about the second-largest cryptocurrency. The possibility that ETH will record more price gains is high. This comes from the increased institutional adoption that the crypto industry has seen.
Analysts have been talking about how the Ethereum price continues to remain under selling pressure after rejecting its all-time highs. Near-term recovery in ETH has proven to be quite difficult, as sellers exert greater pressure, pushing the price lower. There is a possibility that the altcoin could see sub-$4,000 levels, falling all the way to $3,300.
Until then, the ETH price is still consolidating above the $4,000 support level.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
