Ether beats Bitcoin in a risky rally
On the daily chart, Ether surged around 14% to hit its weekly high of $1,554 (data via Binance) on October 26. Bitcoin has undergone a similar rally, but its week-to-date profits are only 6% in comparison.
The ETH/BTC pair gained around 8%, reaching 0.075 BTC on October 26.
The boom in major crypto assets has been in sync with the U.S. stock market’s winning streak since October 24. It also occurred against the backdrop of a weaker US Dollar Index, which has generally traded against the crypto market since March 2020.
Fractal alarm bear
ETH/BTC’s latest price rally took it into a range that preceded a 35% correction in the April-May 2022 session (marked “R1” in the chart below) and helped limit its upside prospects in August-September 2022 (marked “R3” in the table below).
The range coincides with the area defined by the 0.236–0.382 Fib lines of ETH/BTC, or 0.072 BTC–0.077 BTC. Therefore, the pair may stabilize inside the range, followed by a correction towards the 0.068 BTC-0.064 BTC area, its short-term support levels.
Meanwhile, a decisive breakdown below the 0.068 BTC-0.064 BTC zone could expose Ether to fall towards its multi-month ascending trendline, which served as a strong rebound point from the April-May 2022 downtrend.
$ETHBTC | Update
The outlook after closing the pair at the top.
You can have a nice projection by analyzing RTed tweets (for education).
With the bearish indications of mLTF from the red box, the price can reach the lows of the green box.
— Efloud (@EfloudTheSurfer) October 26, 2022
This puts ETH/BTC’s primary downside target at around 0.059 BTC in Q4 2022, down 20% from current price levels.
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