According to Cointelegraph, Ethereum (ETH) has underperformed Bitcoin (BTC) significantly, hitting a three-and-a-half-year low against Bitcoin on September 18, a level last seen in 2021. This development raises questions about whether this low represents a buying opportunity or whether Ethereum will continue to lag behind Bitcoin.
Bitcoin has been on a sideways price swing for months, but some analysts are predicting that it could break out of that range and hit an all-time high in Q4 of this year. However, the same optimism doesn’t extend to ether, which remains well below its all-time high. Polymarket, a leading prediction market, is suggesting an 85% chance that ether won’t hit an all-time high in 2024.
However, there is some hope for ether bulls. The chief investment officer at Bitwise Asset Management noted in a blog post on September 17 that ether could be a “potential contrarian bet through the end of the year.”
Ethereum vs Bitcoin chart analysis reveals a symmetrical triangle pattern, indicating indecision between bulls and bears. Bulls are defending the support line, while bears are aggressively defending the resistance line. Both moving averages are sloping down, and the Relative Strength Index (RSI) is near the oversold zone, indicating that bears are in control. The Ethereum/Bitcoin pair could drop to the support line, where buyers are expected to step in. If the price bounces off the support line and breaks above the moving averages, it could extend its stay inside the triangle. A breakout above or below the triangle could signal the next directional move, with a rise above the triangle targeting 0.18 BTC, surpassing the current all-time high of 0.15 BTC.
On the daily chart, the ETH/BTC pair has been trading within a descending channel for several months, characterized by lower highs and lower lows. A slight positive side for bulls is that the RSI has shown positive divergence, and the 20-day EMA (0.04 BTC) has started to stabilize, indicating reduced selling pressure. A break and close above the 50-day SMA (0.04 BTC) could signal a move towards the downtrend line, signaling a potential change in trend. However, this positive outlook will be invalidated if the price continues to decline and drops below 0.038 BTC, which could push the pair towards the channel support line