The ETH/BTC trading pair is building optimism among investors as it starts to trend upwards again, with Ethereum$ETH
raising hopes for potential recovery.
The formation of a symmetrical triangle formation could signal a significant turning point in Ethereum’s price action.
“An upward move would suggest that buyers are regaining control of the market,” he said, noting that selling pressure is weakening.
Ethereum’s ETH/BTC trading pair is generating a new wave of optimism as selling pressure eases, reinforcing bullish expectations. So, will Ethereum be able to reach higher price levels?
The ETH/BTC trading pair is forming a strong structure for potential upside with the symmetrical triangle formation. The price is fluctuating between support and resistance levels, and is currently positioned near support levels. This could lead to a significant breakout if buying momentum picks up.
Observations of this structure on the monthly timeframe reinforce the possibility of an upward breakout as traders evaluate market sentiment. If ETH rises, the three critical levels to watch out for are 0.0540, 0.0859, and 0.1202, respectively. These levels indicate the potential for ETH to increase in value against BTC. As the ETH/BTC pair approaches these levels, a rally in the ETH/USDT price could also be observed. ETH is currently trading at $3,200, and a successful rally could allow ETH to return to its previous highs of around $4,000.
Recent market data suggests that sellers are losing steam. This is also reflected in the current Relative Strength Index (RSI) data. The RSI is currently at 32.19 and is close to oversold territory, suggesting that downward momentum is weakening. This increases the likelihood of increased buying interest. Furthermore, when the RSI approaches the 30 level, it usually indicates that selling pressure is waning and could be a strong signal for prices to rise.
The decrease in selling pressure is also supported by the positive move in the Chaikin Money Flow (CMF) indicator. This upward move in CMF suggests that buying power is starting to exceed selling power, confirming the potential for a price reversal for Ethereum.
According to CryptoQuant’s on-chain data, there has been a significant increase in Ethereum accumulation, indicating a shift in investors’ strategies to hold Ethereum for the long term. The number of addresses holding Ethereum has reached approximately 19.4 million ETH, corresponding to 16% of the total supply, a significant increase from 10% in August. This development indicates that investors’ confidence is increasing and there is a significant shift in their strategies.