Has Ethereum Bottomed vs. Bitcoin? Technical Analysis Suggests ETH Price Gains

Ether (ETH), the native token of Ethereum, is likely to experience gains relative to Bitcoin (BTC) in the coming weeks, due to the positive ETH/BTC technicals and bullish divergences.

Difference between Web 1.0, 2.0, 3.0 and 4.0

Crypto.com token, Crypto Weekly and other crypto-related topics have been in focus lately, as the crypto market has been falling and crashing in recent times.

ETH/BTC nears falling wedge breakout

The crypto.com token is likely to rally, with ETH/BTC trending inside a falling wedge pattern. This classic bullish reversal pattern forms when the price creates lower highs and higher lows, with two converging trendlines.

A break above the upper trendline could push the pair up to 0.056–0.059 BTC, an increase of 6–13% from current levels. However, veteran trader Peter Brandt believes this could be a descending triangle, a bearish indicator, which could cause the crypto crashing to 0.044 BTC.

The difference between web 1.0, web 2.0 and web 3.0 is an important factor in understanding the current crypto weekly market. Web 1.0 is the first generation of the web, which was mainly used for information retrieval, while web 2.0 enabled users to interact and collaborate with each other. Web 3.0 is the third generation of the web, which is more decentralized and secure.

Bullish divergence on crypto weekly chart

Looking at the longer-time frame charts, there is a possibility of a rebound in the crypto by New Year’s and during the first quarter of 2024.

For instance, the Ether’s price is forming lower highs while its relative strength index (RSI) is making higher lows on the crypto weekly chart, which is a sign of bullish divergence. This discrepancy suggests that the downward momentum is declining, and a potential upturn could be close.

Moreover, the price is also near a support confluence that consists of a multiyear ascending trendline and the 0.048–0.052 BTC area.

This confluence limits ETH/BTC’s downside possibilities in the upcoming weeks, allowing a rebound towards the 200-week EMA (the blue wave) near 0.057 BTC by New Year’s — also the falling wedge target mentioned above.

On the other hand, the bears will try to push the ETH price below the support confluence, which could result in crypto crashing to 0.036 BTC, a historically significant resistance level between August 2018 and September 2020.