Ether fell yesterday (December 4th) along with other cryptocurrencies. However, that hasn’t stopped it from hitting a three-year high on Bitcoin, the world’s leading cryptocurrency by market capitalization.
The ETH / BTC pair gained more than 11.5%, reaching 0.0835 BTC for the first time since May 2018, up to 21% less than on the day.
ETH / USD daily frame price chart | Source: TradingView
The story of the “fence” ETH vs. BTC
While the loss of Ether in USD is substantial, it is still nothing compared to Bitcoin as the ETH / BTC pair climbed to a three-year high. At the same time, some analysts believe investors viewed ether as a hedge against Bitcoin during yesterday’s crash.
“It looks like investors are looking at ether as a hedge,” said Crypto Birb, an independent market analyst, in a tweet, pointing to a four-hour ETH / BTC price chart showing the pair. This is sharply declining average (orange wave) as support after testing the 200 move.
ETH / BTC 4h chart with MA 200. Support | Source: TradingView
Lukas Enzersdorfer-Konrad, Product Manager at Bitpanda, noted that ETH / BTC closed November at its best level in 45 months, which means the bulls can still “add some strength”.
“Ethereum by far outperforms Bitcoin this year” […] It has increased its market dominance by 22%. The number of active addresses on the network continues to increase, while ETH’s net spending continues to decrease, which is probably the main reason for its rapid increase. “
As mentioned earlier, Ether is showing a bullish continuation outlook due to a technical support pattern known as the ascending triangle.
Yesterday, the ETH / BTC pair broke out of an ascending triangular range, accompanied by a slight increase in trading volume. In an ideal scenario, the pair’s upward movement would take them to reach a level of maximum length between the triangle’s top and bottom trendlines, measured from the breakout point.
The weekly ETH / BTC price chart shows an ascending channel pattern | Source: TradingView
As shown in the graph above, the triangle’s upside target from a breakout near 0.077 BTC sets a profit target near 0.1 BTC.
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According to Cointelegraph