The price of Ethereum, the market number two, once again managed to strengthen its foothold in the market by breaking its historical peak. Simultaneously with these fluctuations, experts believe that there is a possibility of further growth of the Ethereum / Bitcoin currency pair.
to the the report Quinn Desk, evidence suggests that the Ethereum / Bitcoin pair trend is likely to continue; Because this currency pair was able to break its multi-year peak. This happened after the increase of capital input to the ether market.
Market data show that Ethereum peaked on Wednesday at $ 2,762 to $ 2,800.
Ethereum prices have risen 43 percent in the past month. Meanwhile, the price of Bitcoin has decreased by 7% in the same period. The price of Ethereum based on bitcoin has reached its highest level in the last 2.5 years and above the range of 0.050 bitcoin, which is a very important technical sign.
Pankaj Balani, co-founder and CEO of Delta Exchange, said:
The Ethereum / Bitcoin currency pair is out of a multi-year price stabilization period and this trend seems to be very strong. There is no resistance in this area and we expect this trend to continue until 0.1 bitcoin.
The implication is that the shift in the steady flow of capital from Bitcoin to Ethereum is likely to continue in the coming months.
Data from Quinn Shears released early last week show that investments in the Ethereum market and related investment products were $ 34 million, while Bitcoin-related volumes were down $ 21 million. .
Meltem Demirors, Senior Strategy Officer Coin Shears, noted the increase in capital inflows from one digital currency market to another.
Demand is changing.
“Ethereum outperforms Bitcoin,” said Raoul Pal, CEO of Real Vision Group.
At this point in the risk cycle, despite launching Ethereum 2.0 and lowering Ethereum fees and reducing supply, I struggle with not selling all my bitcoins and not moving my position to the Ethereum market. I have to say that I am an avid buyer of Bitcoin, but Ethereum performs better and that makes it a better asset to invest in.
Developers expect Ethereum 2.0, or in other words, the Ethereum Consensus Protocol change from proof of work to proof of stock, to be finalized by the end of this year. Following this update, Ethereum creator Vitalik Butrin plans to introduce sharding into the Ethereum mechanism to increase transaction processing capacity. This will be done by dividing the database into 64 small Blockchainks. In this case, we can expect a reduction in fees, which in turn will increase activities and increase demand for ether.
Lennard Neo said that the rise in the price of the Ethereum / Bitcoin currency pair would not be very resilient, adding that it would not be easy. He added:
The jump seen in the weekly chart is very significant, because the next resistance is in the range of $ 0.09, which was created in May 2018. It is likely that Ethereum / Bitcoin will once again fall below the 0.04 to 0.045 bitcoin support before continuing the uptrend.
It is worth noting that the Ethereum / Bitcoin currency pair went through many difficulties to overcome this support.
It should not be forgotten that bitcoin price correction, which is one of the hallmarks of bullish markets, may temporarily reduce the price of the Ethereum / Bitcoin pair; Because experience has shown that the fall in the price of bitcoin will lead to a further fall in the coin market.
The price of Bitcoin had recently fallen to the bottom of $ 48,000. Buyers, however, are reluctant to enter the market despite the Federal Reserve’s continued easing policies.
The sucker index, which is used to determine strength and changes in trends, has also fallen below zero. For the first time since March 2020, this marks a turning point or trend reversal.
Balani said about this:
Falling below $ 60,000 was needed to revive the uptrend.