Recently, the market's focus has returned to the ETH/BTC exchange rate. From a technical perspective, ETH/BTC is still at the bottom of the converging triangle on the monthly level, indicating that Ethereum (ETH) has a very large upward potential, and one could even say that this wave of rising momentum has only just begun.
ETH/BTC Technical Analysis: Double bottom formation, igniting the potential for upward movement?
1. Monthly level: converging triangle bottom pattern.
ETH/BTC continues to oscillate and consolidate on the monthly chart, currently in the bottom area of a large converging triangle. This pattern typically represents that the market is accumulating momentum in preparation for the next breakout. Structurally, ETH has not yet truly begun to break upward, and the potential for growth is very attractive.
It's like a compressed spring; the more it compresses, the stronger the rebound will be. Once the price breaks through the upper triangle, a rapid and strong surge may occur.
2. Daily level: 0.236 position rebound signal
Observing from the daily level, ETH/BTC underwent a pullback after a previous rise and has now fallen back to the 0.236 golden ratio position, triggering a rebound.
It is worth noting that 0.236 is usually the standard double bottom formation area, and market history has repeatedly proven that this position is an important support point for buying intervention. If ETH solidifies its bottom here and completes a double bottom structure, there will be a very high chance of triggering a new wave of rising trends📈.
Can ETH still be bought long? Reasons for long-term bullish outlook.
1. Technical patterns strongly imply breakout potential.
• Monthly level converging triangle bottom support lays the foundation for a breakout.
• The rebound at the daily level 0.236 support position shows that bulls are starting to exert strength, and the bottom formation signal is evident.
2. Market environment and capital sentiment are turning optimistic.
• Recently, there has been an overall inflow of capital into the cryptocurrency sector, with ETH, as the second-largest asset by market capitalization, still being a focal point for mainstream capital.
• The movements of whales and institutional funds show continued accumulation, indicating strong long-term bullish sentiment.
3. Macroeconomic background and technical upgrades are favorable.
• ETH technical upgrades (such as Layer 2 scaling and Dencun upgrade) provide impetus for ecological growth, with demand and value expected to further increase.
• The revival of decentralized finance (DeFi) and the NFT market is driving the demand for ETH in on-chain transactions.
Potential risks and short-term considerations.
Although ETH/BTC is bullish in the long term, there are still short-term volatility risks in the market:
• If ETH fails to hold the 0.236 support, it may test lower support levels, necessitating attention to capital management and risk control.
• Macroeconomic factors (such as inflation data, regulatory policies, etc.) may still disrupt market sentiment.
It is recommended that short-term traders first observe whether the support holds, and then enter in batches to control position risk. Long-term holders can patiently wait for acceleration after confirming the breakout.
Summary: The potential of ETH/BTC is far from being released. Are you ready?
From the structure of the monthly level, ETH/BTC is still in the bottom formation stage, with technical patterns indicating huge upward potential, while the 0.236 position on the daily level has already shown signs of rebound, which may be a precursor to the market entering an upward cycle.
Whether for long-term value investment or short-term trend capture, ETH is worth paying close attention to. If the market truly welcomes a breakout, are you ready to embrace this potential trend?
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