Ether May be Poised for Comeback Against Bitcoin Despite March Downtrend, Technical Indicators Suggest

Ether May be Poised for Comeback Against Bitcoin Despite March Downtrend, Technical Indicators Suggest

By Miles

23 Mar 2023 (about 1 year ago)

2 min read

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Ethereum's Ether continues to decline against Bitcoin, but some technical indicators suggest a potential rebound for Ether in the coming weeks.

Ethereum's native token, Ether, has continued its downtrend against Bitcoin in March, rising only 5.5% compared to Bitcoin's 19.5% gains on a month-to-date basis. This marks Ether's worst month since September 2022 when it fell 11.75%. While Bitcoin is outperforming Ethereum amid the banking crisis in the U.S. and other parts of the world, some technical indicators suggest that Ethereum may be poised for a comeback against Bitcoin.


From a fundamental perspective, traders prefer Bitcoin over Ether as they see it as a "flight to safety" asset. This narrative has gained momentum in recent weeks as Wall Street investors like Cathie Wood have expressed their faith in Bitcoin. As a result, Bitcoin has outperformed traditional assets and the altcoin market, including Ethereum, after signs of trouble appeared at Silicon Valley Bank on March 8.


However, from a technical perspective, Ethereum may be positioned for a comeback against Bitcoin. At least two technical indicators suggest that ETH/BTC could rebound sharply in the coming weeks. First, the pair's three-day relative strength index (RSI) has dropped below 30, which technical analysts consider an "oversold" area. Second, Ether's drop versus Bitcoin has landed its price near its ascending support level.


A similar scenario in the June-July 2022 session preceded an approximately 60% rally toward ETH/BTC's descending trendline resistance (sell zone in the chart above). If the fractal plays out, the pair could rally toward the same resistance level by June 2023. In other words, Ether has a decent chance of rebounding by more than 15% to around 0.075 BTC. However, a break below the ascending trendline support will invalidate the bullish fractal.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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