{"id":269081,"date":"2021-06-08T15:18:40","date_gmt":"2021-06-08T12:18:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin\/"},"modified":"2021-06-08T15:18:40","modified_gmt":"2021-06-08T12:18:40","slug":"ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin\/","title":{"rendered":"# Ethereum bull trap? ETH price signals breakdown versus Bitcoin"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37324b08734\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37324b08734\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin\/#Bearish_wedge\" >Bearish wedge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin\/#January_2018_fractal\" >January 2018 fractal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-bull-trap-eth-price-signals-breakdown-versus-bitcoin\/#Ethereum-Bitcoin_correlation\" >Ethereum-Bitcoin correlation<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum bull trap? ETH price signals breakdown versus Bitcoin <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>A recent run-up in Ether (ETH) prices against its top rival Bitcoin (BTC) <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be at the risk of exhaustion even as analysts see the second-largest cryptocurrency as stronger among the two.<\/p>\n<p>In retrospect, the ETH\/BTC exchange rate rose by up to 40.19% after bottoming out at 0.0553 BTC on May 23. The powerful rebound move reflected a spike in the capital flow from spot ETH to spot BTC market. That also led analysts at Delphi Digital \u2014 an independent market research firm \u2014 to highlight Ethereum&#8217;s &#8220;formidable strength&#8221; in the Bitcoin-quoted markets. They wrote:<\/p>\n<blockquote><p>&#8220;If you look at the YTD ETH\/BTC chart in isolation, you probably wouldn\u2019t guess fear in the crypto market is the highest it\u2019s been in a year.&#8221;<\/p><\/blockquote>\n<p>But a closer look into the ETH\/BTC chart returned evidence that bullish traders might be heading into a bull trap.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bearish_wedge\"><\/span>Bearish wedge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ETH\/BTC formed a pattern that began wide at the bottom and contracted as the price moved higher. As a result, the trading range got narrowed. Meanwhile, the volumes declined as the prices rose and the contracting pattern evolved.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/4e3892f6-2d14-4b8b-8187-0ea36c396a42.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH price rise inside a bearish reversal pattern as trading volumes decline. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Classic chartists refer to the structure as a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/school.stockcharts.com\/doku.php?id=chart_analysis:chart_patterns:rising_wedge_reversal\">Rising Wedge<\/a>. They interpret it as a traditional bearish reversal pattern, primarily because of the loss of the upside momentum on each successive high formation.<\/p>\n<p>Rising Wedges mature as the asset reaches the level where its two trendlines converge. Nevertheless, bearish confirmations do not come until the price breaks below the Wedge support in a convincing fashion. But if it does, the asset risks crashing by as much as the maximum distance between the Wedge&#8217;s upper and lower trendline.<\/p>\n<p>Therefore, the ETH\/BTC rising wedge indicator suggests a decline towards 0.0648 BTC on a negative breakout attempt from the pattern&#8217;s apex \u2014 the point at which the trendlines converge. Also, the 0.0648 BTC level has served as support thought the May 2021 session.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"January_2018_fractal\"><\/span>January 2018 fractal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Delphi Digital compared the responses of ETH\/BTC to Bitcoin&#8217;s cyclical tops in 2018 and 2021 to explain their bullish outlook for the pair.<\/p>\n<p>The firm stressed that ETH\/BTC was comparatively a weaker instrument during the 2017 price rally than 2021. The pair topped out mid-cycle \u2014 in June 2017 \u2014 even as Bitcoin continued climbing and reached $20,000 by year&#8217;s end. By then, ETH\/BTC had crashed by more than 85%.<\/p>\n<p>But a massive correction in the Bitcoin prices in January 2018 offloaded capital into the altcoin markets, causing a short-term upside correction in BTC-enabled pairs. Ether also benefited from the money flow from Bitcoin markets, as it rebounded from 0.0231 BTC in December 2017 to 0.1237 BTC in January 2018 \u2014 a 435.44% rise.<\/p>\n<p>ETH\/BTC then started correcting lower in the weekly sessions as both Bitcoin and Ethereum took a beating in dollar-quoted markets. The pair eventually crashed from 0.1237 BTC, then a year-to-date top, to as low as 0.0246 BTC in December 2018.<\/p>\n<p>But that is not the case with the ongoing ETH\/BTC correction, noted Delphi Digital, writing:<\/p>\n<blockquote><p>&#8220;At the early 2018 top, ETH\/BTC took a massive beating and didn\u2019t recover even close to as quickly as it has this time.&#8221;<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/39b84e04-4366-4bdd-847a-532400105081.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC&#8217;s 2018 and 2021 top comparison per Delphi Digital&#8217;s outlook<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum-Bitcoin_correlation\"><\/span>Ethereum-Bitcoin correlation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whether or not ETH\/BTC would undergo a negative breakout appears to depend on how Bitcoin performs in dollar-quoted markets. <\/p>\n<p>The BTC\/USD exchange rate declined by up to 53.77% from its record high, near $65,000, and started consolidation later. Meanwhile, the ETH\/USD rate also corrected in tandem with BTC\/USD, plunging 60.59% from its all-time high of $4,384. That showed a strong linear correlation between the two digital assets.<\/p>\n<p>Nick Spanos, the founder of Bitcoin Center NYC, told Cointelegraph that Ether would need to break its correlation with Bitcoin in the dollar-denominated markets to have an independent ETH\/BTC trend. Until then, sharp downside moves in ETH\/USD and BTC\/USD would also mean a depressive ETH\/BTC trend. He added:<\/p>\n<blockquote><p>&#8220;While Ethereum has good fundamentals and upgrades in the works, its potential growth in the future is somewhat dependent on the performance of Bitcoin. A breakaway from this trend is being projected by Ethereum investors. However, the current trend does not indicate the likelihood of this in the near to mid term.&#8221;<\/p><\/blockquote>\n<p>Yuri Mazur, head of the data analysis department at CEX.IO cryptocurrency exchange, added that the ongoing anti-inflation narrative could allow Bitcoin to resume its uptrend. As a result, the rest of the cryptocurrency market, including Ethereum, should follow suit. He told CoinTelegraph:<\/p>\n<blockquote><p>&#8220;ETH\/BTC should benefit from a rising trend for cryptocurrencies, especially as Ethereum undergoes the London hard fork upgrade later in July.&#8221;<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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ETH price signals breakdown versus Bitcoin &#8221; A recent run-up in Ether (ETH) prices against its top rival Bitcoin (BTC) appears to be at the risk of exhaustion even as analysts see the second-largest cryptocurrency as stronger among the two. In retrospect, the ETH\/BTC exchange rate rose by up to 40.19%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":269082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvMDYwMTk4YjItZmQ2MC00MzllLWFkY2ItZTgzYmU5NTY4NDNkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,82402,74891,75326,74939,75150,78261,73785],"class_list":["post-269081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-ether-price","tag-ethereum","tag-ethereum-2-0","tag-market-analysis","tag-market-update","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/269081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=269081"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/269081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/269082"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=269081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=269081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=269081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}