The floppening? Ethereum price weakens post-Merge, risking 55% drop against Bitcoin

Ethereums native token Ether (ETH) has been forming an inverse-cup-and-handle pattern considering that May 2021 on the weekly chart, which means a potential decline against Bitcoin (BTC).

ETH/BTC weekly chart with inverted cup-and handle breakdown setup Source: TradingView

Inverse cup-and-handle describes a bearish reversal pattern that is connected with lower trading volume. When the cost breaks listed below its assistance level, this generally takes place. It falls towards the level at the length of the optimum height between cups peak (or the assistance line).

The theoretical definition of ETH/BTCs weekly charts shows 0.03 BTC as the next disadvantage target. This is around 55% less than Sept. 16s cost.

Is ETH/BTC able to manage a Dow Jones?

Tom Bulkowski, a veteran analyst, notes that these patterns have an 61% success rate in satisfying their advantage targets.

The pair is waiting on a breakout move above patterns resistance of 0.08 BTC. It has been trading lower within the deal with range. After testing the resistance level today, the set is likely to pullback towards its lower trendline of 0.05 BTC.

Related: Academic research study suggests that ETH is a superior store of worth than Bitcoin.

Ultrasound.Money reports that Ethers supply development is now at minus 1.43 percent per year. The token could end up being “disinflationary” gradually. Lim claims that Ether is an attractive option for Bitcoin to institutional investors.

The weekly log chart shows that the ETH/BTC pairing is revealing a possible cup and deal with because January 2018. This suggests that a rally towards 0.5 BTC by 2023 is possible, which is more than 520% greater than current levels.

Alternativly, the ETH/BTC pairing could still deliver significant gains over the next couple of years.

ETH/BTC weekly chart with cup-and-handle breakout setup Source: TradingView.

The cup-and-handle style that appeared on the Dow Jones chart in the Great Depression of 1930s and 1940s took 9 years to produce and the deal with took another four years. It reached its upside target in 1950s as detailed listed below.

Flippening, or floppening.

The capacity for Ethereum to exceed Bitcoin in market capitalization has been called “the flippening.”.

Cup-and-handles, unlike its inverse equivalent, are bullish reversal pattern with their upside targets at levels equal their optimum height determined from their breakout points.

Joshua Lim, Genesis Tradings head of derivatives, mentioned that Ethereum is in competition with Bitcoin to be the “inflation hedge.” Lim pointed to Ethereums EIP-1559 Update from August 2021, which presented a cost burning mechanism into its protocol.

Possibly, ETH/BTC may now remain in deal with stage of a similar cup and deal with pattern as revealed by the shaded purple coming down channel area in the chart below.

Dow Jones Industrial Average cup and handle pattern. Source: StockCharts.com.

12/ can BTC remain king going fwd? Only time will inform if the ETH narrative after-Merge is strong enough for overthrowing the status quo. In the meantime, BTC needs to continue trading as a funding property and chosen hedging tool for the whole possession classes.
Joshua Lim (@joshua_j_lim), August 29, 2022.

Lim claims that Ether is an appealing alternative for Bitcoin to institutional financiers.

There is a big difference between Digital Asset Values and Digital Soft. As of September 2022 Ethers market capital was $175 billion, compared to Bitcoins $372 trillion.com.
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The pair is waiting for a breakout relocation above patterns resistance of 0.08 BTC. After testing the resistance level this week, the set is likely to pullback towards its lower trendline of 0.05 BTC.

Cointelegraph was told by Singh that Bitcoin would stay a “digital treasure” and Ethereum would be an “Internet 2.0 job.”.

As of September 2022 Ethers market capital was $175 billion, compared to Bitcoins $372 trillion.com.

Many individuals disagree with the flippening story. Rahul Singh, co-founder of Defi platform FINtokens, is one example. Cointelegraph was informed by Singh that Bitcoin would stay a “digital treasure” and Ethereum would be an “Internet 2.0 task.”.

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