Ethereum price ‘bullish triangle’ puts 4-year highs vs. Bitcoin within reach

BTC/USD vs. USD day-to-day rate chart. Source: TradingView

As both ETH/USD (and BTC/USD) drop almost in unison, the pair is responding to the Federal Reserves potential strategies to raise rates by 50 basis points and lower its balance sheet to $95 billion per monthly.

In the previous 2 weeks, Ethereums native token Ether has actually fallen by about 17% against USD. Its performance versus Bitcoin (BTC), nevertheless, has actually been more enjoyable with the ETH/BTC currency exchange rate dropping 4.5% in the same time period.

According to the current information, rates for consumers increased 8.5% in March, which is the greatest level considering that 1981.

Breakout of the ETH/BTC triangle

ETH/BTC is aiming for a correction towards the lower trendline of the triangle after its pullback from higher trendline.

ETH/BTC is now trading at a horizontal resistance level, which makes up an ascending triangular range with rising trendline assistance.

ETH/BTC weekly chart with rising triangle setup. Source: TradingView

Rising triangles tend to move the price in the very same instructions as their prior trends. Based upon the chart below, ETH/BTC rallied before forming one. Its therefore possible that its bull run could continue to its February 2018 highs of 0.1 BTC.

In spite of ETH/BTC falling in the past two weeks, numerous technicals are still bullish. The extension pattern is a traditional continuation pattern that recommends the set might resume its bull run in 2022.

The bearish reversal scenario

Veteran financier Tom Bulkowski highlights a 70% success rate in rising triangles and highlights the likelihood that Ether might reach 0.10 BTC by 2022.

Weekly rate chart for ETH/BTC Source: TradingView.

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The set will ultimately break listed below its lower trendline in its triangle, which coincides with its 50 week exponential moving average (the red waves in the chart above), near 0.06 BTC. This opens the possibility of a further fall to 0.05 BTC. This support zone is from May-June 2021.

Samurai Trading Academys study reveals that rising triangle breakouts achieve their upside targets in 73% of cases.

Ascending triangles tend to move the price in the same direction as their previous patterns. Based on the chart below, ETH/BTC rallied prior to forming one. Its therefore possible that its bull run might continue to its February 2018 highs of 0.1 BTC.

Related: Bitcoin recuperates $40K in 24-hour crypto liquidations near $500M.

ETH/BTC still has a 30% chance of revoking its rising triangle setup.

The set will ultimately break listed below its lower trendline in its triangle, which coincides with its 50 week exponential moving average (the red waves in the chart above), near 0.06 BTC. This opens the possibility of an additional fall to 0.05 BTC.