[ad_1]
Crypto investors have tossed caution to the wind, as evidenced by the recent surge in the ether-bitcoin (ETH / BTC) price ratio, and the trend is expected to continue.
“ETH / BTC is showing a bullish breakout, and this is a sign of market-wide risk where alternative cryptocurrencies tend to outperform BTC,” said Katie Stockton, Founder and Managing Partner of Fairlead Strategies.
Some cryptocurrency investors view bitcoin, the largest cryptocurrency by market value, and stablecoins as safe-haven assets in the cryptocurrency markets – a must-see during times of stress similar to the Japanese yen, the franc. Swiss or US Treasuries in traditional markets. After all, bitcoin is the largest cryptocurrency by market value and the most liquid market in the digital asset space with stablecoins like tether.
Meanwhile, ether and alternative cryptocurrencies are seen as relatively risky bets similar to growth sensitive assets like copper, gold, stock markets, Australian dollar.
Thus, a rising ETH / BTC could reflect an improved risk appetite in the crypto markets. This has been the case in the past and in recent weeks.
For example, bitcoin rose 12% last week but underperformed almost every crypto subsector, including non-fungible tokens and web 3.0 tokens. During the same period, ETH / BTC has increased by more than 3%. A similar action was observed from mid-April to mid-May.
Ether-bitcoin hit a two-month high of 0.073 on Thursday, confirming a descending triangle breakout on the daily chart.
The breakout indicates that the consolidation is over and the biggest bull run since March lows near 0.03 has resumed.
“ETH / BTC came out of a two-month consolidation given the recent strength in the ether,” said licensed market technician and CoinDesk reporter Damanick Dantes. “It’s a bullish continuation pattern. Next resistance is seen around 0.8.
In other words, ether and other altcoins could continue to outperform bitcoin in the short term. The technical picture blends in nicely with the narrative that the crypto market is moving, with investors starting to bypass bitcoin and head straight into other sub-sectors of the industry.
The path of least resistance for ether-bitcoin appears to be on the higher side following the London hard fork implemented on Thursday.
“The idea of ether becoming a deflationary cryptocurrency in the future is now tangible, and the effects on Ethereum’s valuation could be profound,” Martin Gaspar, research analyst at CrossTower, told CoinDesk.
With the implementation of the hard fork, Ethereum now burns a portion of the fees paid to miners, causing a net reduction in the issue. For example, the blockchain has already burned or destroyed more than 5,000 ETH since the upgrade went into effect on Thursday, offsetting around 40% of the more than 12,000 coins mined during the period.
“Ethereum will likely become the preferred crypto trade on Wall Street and may see limited resistance towards the $ 3,000 level,” Edward Moya, senior market analyst for the Americas at brokerage firm Oanda wrote on Friday.
[ad_2]
Source link