Ether beats Bitcoin in Risk on Rally
On the daily chart, Ether surged about 14%, hitting a weekly high of $1,554 on October 26 (Binance data).
The ETH/BTC pair rose by around 8%, reaching 0.075 BTC on October 26th.
The boom across the top crypto assets is in sync with the US stock market winning streak since October 24th. Also in the background was the weakening of the US dollar index, which typically trades inversely to crypto markets since March 2020.
Bear Fractal Alarm
ETH/BTC’s latest price rally hit a range ahead of a 35% correction in the April-May 2022 session (marked ‘R1’ in the chart below) and the August-September 2022 session. It helped limit the upside prospects (labeled ‘R3’ in the chart below).
This range coincides with the region defined by the 0.236 to 0.382 Fib line of ETH/BTC, or 0.072 BTC to 0.077 BTC. Therefore, the pair may stabilize within the range before a correction towards the short-term support level of the 0.068 BTC to 0.064 BTC area.
Meanwhile, the definitive breakdown below the 0.068 BTC to 0.064 BTC area drops towards the multi-month uptrend line that served as a solid rebound point after the April-May 2022 downtrend. There is a possibility.
$ETHBTC | | Update
Outlook after closing the pair at the top.
By analyzing tweets that are retweeted, you can make some great predictions (educational).
The mLTF bearish signal from the red box could cause the price to visit the green box lows.
— Eflood (@EfloudTheSurfer) October 26, 2022
This puts ETH/BTC’s primary downside target in Q4 2022 at around 0.059 BTC, down 20% from the current price level.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.