Ether’s uphill grind has been clear to anyone that has watched its trading over the last few years.
In this post, I’ll be taking a quick look at Ether’s value relative to Bitcoin, reflected as the ETH/BTC ratio. Below is the weekly chart:
$ETHBTC (Coinbase: Ethereum/Bitcoin)
The line in the sand for the ratio is 0.04 - this is a clear resistance level going back to the beginning of September 2018, as denoted by the red arrow on the chart.
Bulls have not managed to close ETH/BTC above this level since it dropped below it then, despite two failed attempts at crossing over it in December 2018 and again in February 2019.
MACD has been flirting with a break above the zero line since the end of February 2020. Such a break would be indicative of a shift in momentum in favor of bulls. Note that MACD has not traded above the zero line since July 2018.
As for directional movement, +DMI is above -DMI right now, reflecting price action in favor of bulls. A rising ADX to match would suggest a bullish trend on the weekly chart is brewing, though that has not yet occurred.
The recoil in Ether’s value relative to Bitcoin is perhaps due to expectations linked to Ethereum 2.0’s development. If developers are able to deliver on the next phase of the network’s progression, then it will be interesting to see how the market reacts, particularly as Ethereum approaches five years since its genesis block.
For now, the line in the sand on the chart is clear, and one to watch moving forward.