{"id":505313,"date":"2022-10-31T23:30:00","date_gmt":"2022-10-31T20:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/"},"modified":"2022-10-31T23:30:00","modified_gmt":"2022-10-31T20:30:00","slug":"ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/","title":{"rendered":"# Ethereum flashes a classic bullish pattern in its Bitcoin pair, hinting at 50% upside"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 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-6af7de9bc8407\" 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-6af7de9bc8407\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/#%E2%80%9D_Ethereum_flashes_a_classic_bullish_pattern_in_its_Bitcoin_pair_hinting_at_50_upside_%E2%80%9C\" >&#8221; Ethereum flashes a classic bullish pattern in its Bitcoin pair, hinting at 50% upside &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/#Ether_has_a_61_chance_of_breaking_out_versus_Bitcoin\" >Ether has a 61% chance of breaking out versus Bitcoin<\/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-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/#Time_to_turn_bullish_on_ETH\" >Time to turn bullish on ETH?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-flashes-a-classic-bullish-pattern-in-its-bitcoin-pair-hinting-at-50-upside\/#ETHBTC_needs_to_break_the_range_resistance\" >ETH\/BTC needs to break the range resistance<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_flashes_a_classic_bullish_pattern_in_its_Bitcoin_pair_hinting_at_50_upside_%E2%80%9C\"><\/span>&#8221; Ethereum flashes a classic bullish pattern in its Bitcoin pair, hinting at 50% upside &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4b69a2fe>Ethereum\u2019s native token, Ether (ETH), looks poised to log a major price rally versus its top rival, Bitcoin (BTC), in the days leading toward early 2023.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ether_has_a_61_chance_of_breaking_out_versus_Bitcoin\"><\/span>Ether has a 61% chance of breaking out versus Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The bullish cues emerge primarily from a classic technical setup dubbed a \u201ccup-and-handle\u201d pattern. It forms when the price undergoes a U-shaped recovery (cup) followed by a slight downward shift (handle) \u2014 all while maintaining a common resistance level (neckline).<\/p>\n<p>Traditional analysts perceive the cup and handle as a bullish setup, with veteran Tom Bulkowski <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thepatternsite.com\/cup.html\">noting<\/a> that the pattern meets its profit target 61% of all time. Theoretically, a cup-and-handle pattern\u2019s profit target is measured by adding the distance between its neckline and lowest point to the neckline level.<\/p>\n<p>The Ether-to-Bitcoin ratio (or ETH\/BTC), a widely tracked pairing, has halfway painted a similar setup. The pair now awaits a breakout above its neckline resistance level of around 0.079 BTC, as illustrated in the chart below.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/e5e3bebc-2427-48f7-9772-b900be3ca497.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC weekly price chart featuring a cup and handle. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a result, a decisive breakout move above the cup-and-handle neckline of 0.079 BTC could push Ether\u2019s price toward 0.123 BTC, or over 50%, by early 2023.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/3aac2369-ad04-4406-af0b-586b9dd50401.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC weekly price chart featuring cup-and-handle breakout setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Time_to_turn_bullish_on_ETH\"><\/span>Time to turn bullish on ETH?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether\u2019s strong interim fundamentals compared with Bitcoin further improve its possibility of undergoing a 50% price rally in the future.<\/p>\n<p>For starters, Ether\u2019s annual supply rate fell drastically in October, partly due to a fee-burning mechanism called EIP-1559 that removes a certain amount of ETH from permanent circulation whenever an on-chain transaction occurs. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/3844629a-eb1d-44de-b624-98e8de34a75f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ethereum supply rate post-Merge. Source: Ultra Sound Money<\/em><\/figcaption><\/figure>\n<p>XEN Crypto, a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> mining project, was mainly responsible for raising the number of on-chain Ethereum transactions in October, leading to a higher number of ETH burns, as Cointelegraph previously\u00a0covered.<\/p>\n<p>Over\u00a02.69 million ETH (<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>roximately $8.65 billion) has gone out of circulation since the EIP-1559 update went live on Ethereum in August 2021, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ethburned.info\/\">data<\/a> from\u00a0EthBurned.info.<\/p>\n<p>It shows that the more clogged the Ethereum network becomes, the higher Ether\u2019s probability of entering a \u201cdeflationary\u201d mode gets. So, a depleting ETH supply may prove bullish, if the coin\u2019s demand rises simultaneously.\u00a0<\/p>\n<p>In addition, Ethereum\u2019s transition to a proof-of-stake consensus mechanism via \u201cthe Merge\u201d has acted as an Ether-supply sucker, given that each staker \u2014 whether an individual or a pool \u2014 is required to lock away 32 ETH in a smart contract to earn annual yields.<\/p>\n<p>The total supply held by Ethereum\u2019s PoS smart contract reached an all-time high of 14.61 million ETH on Oct. 31.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/fa73086b-082e-4b20-894d-20c9b8ecc9e2.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Ethereum 2.0 total value staked. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>In contrast, Bitcoin, a proof-of-work (PoW) blockchain that requires miners to solve complex mathematical algorithms to earn rewards, faces persistent selling pressure.<\/p>\n<p><strong><em>Related:\u00a0Public Bitcoin miners\u2019 hash rate is booming \u2014 But is it actually bearish for BTC price?<\/em><\/strong><\/p>\n<p>In other words, there is a comparatively higher selling pressure for Bitcoin versus Ether.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETHBTC_needs_to_break_the_range_resistance\"><\/span>ETH\/BTC needs to break the range resistance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether\u2019s road to a 50% price rally versus Bitcoin has one strong resistance area midway, acting as a potential joy killer for bulls.<\/p>\n<p>In detail, the 0.07 BTC\u20130.08 BTC range has served as a strong resistance area since May 2021, as shown below. For instance, the December 2021 pullback that started after testing the said range as resistance resulted in a 45% price correction by mid-June 2022.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/15f674a7-c8db-467d-8444-863472a0dd7f.png\"><figcaption style=\"text-align: center;\"><em>ETH\/BTC weekly price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>A similar pullback could have ETH test the 0.057\u20130.052 range as its primary support target by the end of this year or early 2023.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 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Ether has a 61% chance of breaking out versus Bitcoin The bullish cues&#8230;<\/p>\n","protected":false},"author":1,"featured_media":505314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvZGM1ZjY2MGMtMDg3Ni00YjU1LTlhNmItZjkzMGE0NTIyY2JkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81951,74982,74863,82402,74891,75326,74938,74939,74876,75578,78261,73785],"class_list":["post-505313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-analysis","tag-btc-markets","tag-cryptocurrencies","tag-ether-price","tag-ethereum","tag-ethereum-2-0","tag-ethereum-price","tag-market-analysis","tag-proof-of-stake","tag-proof-of-work","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505313","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=505313"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/505313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/505314"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=505313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=505313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=505313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}