ETH and BTC at multi-month highs
ETH/BTC surged up to 0.075 intraday on Aug. 6 after a 1.5% upward move. The pair’s gains were part of a wider rebound trend that began a month ago at 0.49 and has since seen approximately 50% gains.
Daily price chart for ETH/BTC Source: TradingView
Merge will see Ethereum move from proof-of work (PoW), mining, to proof-of stake (PoS) and the ETH/BTC recovery has been partially realized
Ethereum’s “rising wedge”, suggests a sell-off
Technically speaking, Ether is concerned about potential interim losses. ETH/BTC presents a convincing rising wedge.
Rising wedges can be considered bearish reversal patterns. They occur when the price trend higher within a range defined as two rising, converging trendslines. They usually resolve when the price falls below the lower trendline, which is the maximum height of the structure.
ETH/BTC daily chart with “rising wedge” breakdown setup. Source: TradingView
Bearish divergence risks are further increased by a falling volume and relative strength indicator (RSI), against a rising ETH/BTC. This adds weight to the wedge’s bearish setup for an target of 0.064 BTC or down 11% from its current price.
Ether is stronger than the dollar
Technicals show a brighter outlook for Ethereum against the U.S. Dollar. A classic bullish reversal pattern makes it possible for ETH/USD to breakout 10% in August.
Related: Multiple barriers prevent mainstream adoption of decentralized finance
On a 4-hour chart, the ETH/USD appears to have formed what appears like a “double top.” This pattern looks like the letter W because it has two consecutive lows, followed by a change of direction from downtrend towards uptrend.
Four-hour chart of ETH/USD with “double bottom” breakout setup. Source: TradingView
A double bottom pattern is formed when the price breaks through its common resistance level. It then rises as far as the distance between the resistance and the first bottom.
ETH could rise to $1,940 in august, up 10% over today’s price.
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