According to a traditional technical pattern, Ethereum’s native token Ether (ETH) has the potential of recording a 40% price rise against its top rival Bitcoin (BTC).
The structure is known as a “symmetrical triangular” and develops when the price makes a series higher lows than lower highs. This results in two trendlines converged with a degree symmetry. It appears as a triangle.
Analysts consider symmetrical triangles to be trend continuation indicators. This means that they send prices in the same direction as their previous trend after a clear breakout. The ongoing ETH/BTC price boom may see an upside continuation after it has fluctuated within a similar triangle structure for the past four months.
Ether’s attempt at breaking out of its triangle consolidation setup is part of the reason. After rising seven consecutive weeks, Ether has experienced a total growth rate of 179%. The ETH/BTC exchange rates could rise to the maximum height of the triangle (approximately 0.025 BTC) after it has been rising seven weeks in a row (approximately 0.069 BTC).
This puts the pair’s profit target at 0.094 BTC, or about 40% more than 0.069 BTC.
Outperformance by Ether
As Ether outperforms Bitcoin in dollar terms, its bullish outlook is evident.
The ETH/USD exchange rate climbed 6.61% to $3.442, its highest point in three months. Bitcoin, however, posted smaller gains. It rose 2.5% to $48,169, which reveals a greater interim demand among traders for Ether tokens.
Dmitry Mishunin is the founder and CEO at smart contract audit firm HashEx. He predicted that Ethereum and other “smart contract-enabling” blockchains would outperform Bitcoin over time, citing their superior utility.
Mishunin stated that “The duo Cardano-Ethernet has the propensity for harboring countless innovative projects,” and added that Ethereum could flip Bitcoin over the long term.
“Bitcoin’s capped supply and first-mover advantage are the only things that make it a Bitcoin, which many investors are looking to replace with unique technology that could drive a blockchain-dominated future.”
Jon Ovadia is the founder and CEO at crypto exchange Ovex. He also stated that Ethereum has stronger fundamentals than Bitcoin right now, in large part due to its recent network upgrade that added deflationary pressure through a fee burning mechanism.
Ovadia stated that so far, approximately 146,878.7 ETH, or roughly $492.3 million, have been burned from the total circulating stock.
“The launch of Ethereum 2.0, which is highly anticipated, will allow for a better Proof-of-Stake system. This will make the blockchain more useful and increase its value.
Bitcoin’s future, in the meantime
Due to Ether’s incremental adoption in the booming nonfungible token and decentralized finance (DeFi), industries, Ether has outperformed Bitcoin so far in 2021. At the moment, Ether’s year-to date profits are 373 percent compared to Bitcoin’s 63.55%.
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However, Mike McGlone of Bloomberg Intelligence, a senior commodity strategist, stated that Bitcoin would eventually catch up with Ether’s gains and lead to $100,000 by 2021, more than twice the current price.
Fundstrat Global Advisors’ Tom Lee envisions a six figure bid for Bitcoin, as long as the average price remains above 200 days. This is a long-term momentum measure.
You should research all aspects of trading and investment before making any decisions.