As ETH/BTC hit a 3-year high, Ethereum acted as a “hedge” in the collapse of Bitcoin prices
Ethereum’s native token Ether (Ethereum) It plummeted with other cryptocurrencies on December 4. Nevertheless, its downward trend has not stopped it from trading against Bitcoin (Bitcoin), the world’s leading cryptocurrency based on market value.
The ETH/BTC exchange rate rose by more than 11.50% for the first time since May 2018, reaching 0.0835 BTC. The price of Ether fell 15% against the U.S. dollar On Saturday, after the market sell-off Bitcoin plunges 21% intraday.
The “hedging” narrative of ETH and BTC surfaced
Although the loss of Ether is large, it is relatively modest in dollar terms compared to Bitcoin, as the ETH/BTC pair has soared to a three-year high.At the same time, some analysts believe that investors are beginning to view the second largest cryptocurrency as A safe haven against Bitcoin During the crash on Saturday.
“Investors seem to be using ETH as a hedging tool,” independent market analyst Crypto Birb said in a tweet on Saturday, noting that the four-hour ETH/BTC price chart (shown below) shows that the currency pair is testing its 200 The periodic moving average (orange wave) serves as support.
Bitpanda’s Chief Product Officer Lukas Enzersdorfer-Konrad pointed out that the November closing price of ETH/BTC was the best closing price in the past 45 months, which means that the bulls still have “some power to continue to operate.”
“Ethereum outperformed Bitcoin by a lot this year […] It raised its market dominance to 22%. The number of active addresses on the network continues to climb, while the net issuance of ETH continues to decline, which may be the main reason for its rapid growth. “
As Cointelegraph Covered earlier, Due to the technical support pattern (called ascending triangle), Ether has shown the prospect of continuing its upward trend.
On Saturday, the ETH/BTC currency pair broke through the ascending triangle interval and moved upward, while trading volume increased slightly. In a “perfect” world, the upward trend of a currency pair should extend until it reaches a level equal to the maximum distance between the upper and lower trend lines of the triangle when measured from the breakthrough point.
In a “perfect” world, the upward trend of a currency pair should extend until it reaches a level equal to the maximum distance between the upper and lower trend lines of the triangle when measured from the breakthrough point.
As shown in the figure above, the upward target of the triangle starts from the breakthrough point near 0.077 BTC, and the profit target is placed near 0.1 BTC.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.