• The ether-bitcoin (ETH/BTC) ratio could rally towards a two-month high according to Lewis Harland, a portfolio manager at Decentral Park Capital.
• The ratio has broken out of a multi-month triangle pattern, often called a wedge, indicating a bull victory in the prolonged tug-of-war with bears.
• The breakout has opened the doors for a rally towards the early December high of 0.07636 and early November highs of nearly 0.078.
The crypto market is abuzz with excitement as the ether-bitcoin (ETH/BTC) ratio could be on its way to a two-month high. This prediction comes from Lewis Harland, a portfolio manager at Decentral Park Capital, who believes the ratio has broken out of a multi-month triangle pattern, often called a wedge. This indicates a bull victory in the prolonged tug-of-war with bears and could pave the way for a rally towards the early December high of 0.07636 and early November highs of nearly 0.078.
The triangle pattern was identified by trendlines connecting highs registered in September, October and December, and lows hit in October, November and December. It is quite common in the crypto market as triangles occur when both bulls and bears are unwilling or unable to lead the price action, leading to volatility compression. An eventual breakout or breakdown often brings a big bullish or bearish move. This is exactly what happened in the case of the ETH/BTC ratio as the bullish breakout has opened the doors for a possible rally.
Harland believes that the breakout has created a strong foundation for the bulls to push the ratio towards the two-month highs. He also said that this could result in a “bears in disbelief rally” in ether in the coming weeks. This bullish sentiment is echoed by other crypto analysts as well who are of the opinion that the ETH/BTC ratio could push higher in the near-term.
For now, the bullish momentum seems to be firmly in place and if the bulls can sustain the upward move, the ETH/BTC ratio could reach new highs in the coming days. This could pave the way for further gains in the crypto market, especially in the ether market, as more investors pour in. However, it is still early to call the shot and one should always exercise caution while trading in the highly volatile crypto market.