Increased utility in DeFi, NFTs back Ethereum’s 3-year high in its ETH/BTC pair

This week, Ether (ETH), the price, reached a new 2021 high, against Bitcoin (BTC). Its year-to-date returns are slightly higher than 350%. Technical analysis suggests that the rally could continue.

Dec. 1 was the first day that Coinbase saw bids for the ETH/BTC pairing hit 0.0835 BTC. This upside move was part of an uptrend which began in October after Ether dropped against Bitcoin at 0.0630 BTC. It was able to retrace almost 41% of the price decline.

Daily price chart for ETH/BTC Source: TradingView

Ether’s boom is driven by growing adoption

The ETH/BTC price rise is a reflection of deep interest in Ethereum. It is currently the most popular smart contract platform worldwide by market capitalization and users. This scenario is slightly different from that for Bitcoin, which functions as a speculative and global hedge against inflation.

Ethereum has become a key asset in crypto growth sectors such as nonfungible tokens, decentralized finance (DeFi), and the Metaverse. This space requires Ether to run smart contracts. This has led to increased demand and a steady rise in the price of Ethereum.

Total value locked in ETH-based DeFi platforms (including staking). Source: Defi Llama

Eth demand is expected to continue to grow in the next year. Many analysts predict that prices will remain within the $6,000- $10,000 range.

Daily price chart for ETH/USD Source: TradingView

Matt Maley, chief market strategist at Miller Tabak + Co., predicted additional gains for Ether if it breaks above its mid-November high of $4,900. Maley says that Bitcoin bulls are still under pressure at the cryptocurrency’s mid November and mid April highs of $69,000 to $65,000.

Maley stated that Ether could reach and hold an all-time high, while BTC trades in the downtrend.

It will prove that Ether is the crypto of choice for most investors.

Technical outlook for Ether against Bitcoin also suggests stronger bull runs for former in the future.

Similar: Ethereum is approaching a new ATH. But derivatives data reflects mixed emotions

A prolonged bullish breakout may be possible

The most recent bout of buying saw ETH/BTC move above a multimonth resistance trendline, which forms an ascending triangle pattern. Now the pair is eyeing an extended bull run towards 0.1 BTC as shown in this chart.

ETH/BTC weekly chart with Ascending Triangle setup Source: TradingView

Ascending triangles are often continuation patterns. This means that they tend to push the price in the same direction as its previous trend.

ETH/BTC’s breakout price is close to 0.077 BTC, while its maximum height is 0.022 BTC. This would put the ETH/BTC pairing on a path to 0.1 BTC in a perfect world. However, due to the volatility of the cryptocurrency sector, anything can happen.

com. You should do your research before making any investment or trading decision.

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