- Ethereum and Bitcoin have both seen significant declines against their USD trading pairs today
- This came about after the benchmark cryptocurrency raced to all-time highs and posted a rejection at this level, pointing to underlying weakness amongst bulls
- ETH’s BTC trading pair, however, has remained stable, as the two digital assets moved lower in tandem
- This is a positive thing for Ethereum, as one analyst is noting that ETH/BTC’s current strength indicates that this trading pair could rally as much as 180%
- This would naturally have serious implications for Ethereum’s USD trading pair as well – greatly favoring bulls
Ethereum and the aggregated crypto market have been caught in the throes of an intense bout of volatility as of late, which has primarily come about due to Bitcoin’s inability to break above the upper-$19,000 region.
The selling pressure placed on the entire market overnight came about after Bitcoin made another attempt to set fresh all-time highs, with the benchmark crypto plunging as low as $18,200 before finding significant support.
This sent a shockwave throughout the entire market, with ETH plunging into the upper-$500 region after navigating into the mid-$600 region.
One trader is still expecting ETH to see some serious upside in the near-term, especially against its Bitcoin trading pair.
Ethereum Struggles to Gain Momentum as Bitcoin Nukes Lower
At the time of writing, Ethereum is trading down just under 5% at its current price of $589.
This marks a notable decline from its recent highs of nearly $640 set during the heat of yesterday’s market-wide upswing.
The selling pressure that forced ETH down below $600 came about solely due to Bitcoin’s rejection at its $19,800 highs. BTC plunged as low as $18,200 before finding any serious buy-side support.
Trader Claims ETH is Likely to Explode in Value Against Bitcoin
It’s no secret that Ethereum has been slightly underperforming Bitcoin throughout the course of its recent uptrend, with the crypto still down over 50% from its all-time highs.
That said, one trader is expecting the tides to shift back into ETH’s favor in the near-term. He postulates that it could soon rise by as much as 90-180% against BTC due to it reclaiming its 200-day EMA, breaking a key trendline, and testing demand.
“ETH | BTC: Imo the ETH Daily is setting up quite nicely for a bullish future. 200EMA reclaimed, major TL broken and retested, bullish Kumo Twist, demand tested. Feed this bullish energy into the weekly and break the 200W EMA and imo we’re good for 90-180% gain vs BTC.”
Image Courtesy of Smokey. Source: ETHBTC on TradingView.
As long as Ethereum can hold up against Bitcoin in dollar terms over the coming few days, this strength will remain valid.
Featured image from Unsplash. Charts from TradingView.