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This is a technical analysis post by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
It is unusual to see ether the second largest crypto in the world by market capitalization, which shows the relative strength against the market leader bitcoin in a day when the market is under pressure.
Today is exactly that rare example. While the bitcoin has slipped over 2% in the day to about $97,200, ether remains largely stable near $3,230, according to data source CoinDesk. This divergence raised the ether-to-bitcoin ratio (ETH/BTC) by more than 2%, signaling the outperformance of ether.
With that in mind, here are three key charts worth keeping an eye on.
ETH / BTC ratio
The Binance-listed ratio is currently confined to a counter-trend channel, reflecting a pause after the strong rally observed between May and August. The slope of this channel is relatively gentle, suggesting that the price action is more of a consolidation phase rather than a complete downtrend.
Therefore, a breakthrough from this channel will confirm a renewed investor bias in favor of ether over bitcoin, suggesting more potential for the ETH/BTC ratio. Interestingly, the report’s MACD histogram looks poised to cross above zero, signaling a potential bullish shift in momentum.
Ether
Like the ether-bitcoin ratio, the dollar ether price is also moving in a counter-trend channel, with signs of seller exhaustion near $3,000, as evident by the long tail attached to the recent daily candles.
This suggests potential for price rebound, although a clean breakout from the channel is needed to confirm a broader bullish outlook.
XRP / BTC
A potential rally in ether, widely considered the leading altcoin, could spark rallies in other major tokens, particularly in the relationship between XRP and payments-focused bitcoin.
The report continues to reel in a four-year gap, building momentum for a significant breakthrough. If ether surges, this could act as a catalyst for a bullish resolution in the XRP/BTC ratio, potentially triggering significant gains.
