ETHBTC looking strong and ready to rally
Updated
Since BTC topped around 31k, ETH has outperformed BTC. It looks like ETH is slowly gaining more and more, as more ETH is being slowly burned through EIP-1559 and more ETH is being staked. As ETH outflows since the Shapella upgrade have peaked and inflows are dominating, ETH now has a yield of about 5%; ETH looks more attractive than BTC.
Of course, BTC has its upcoming halving less than a year from now, and recently Ordinals have given Bitcoin new life. As gold was rallying, the digital gold narrative was also more robust. However, Ethereum has seen its Layer 2 protocols gain more and more traction while AI stocks are pumping like crazy and gold is dumping. Essentially flexible tech is preferred to stable and inert metals.
ETHBTC has almost completed a breakout, as it hasn't fully reclaimed all key diagonals and the yearly pivot. It has reclaimed all critical support, penetrated the 0.06-0.066 area, which I was expecting to happen for a while, and is now looking solid.
Someone could go long now, with a stop loss below 0.064 or waiting for the full breakout. Someone could wait before going long for BTCUSD and ETHUSD to have a failed breakdown by hitting 25700$ and 1720$, respectively.
Of course, BTC has its upcoming halving less than a year from now, and recently Ordinals have given Bitcoin new life. As gold was rallying, the digital gold narrative was also more robust. However, Ethereum has seen its Layer 2 protocols gain more and more traction while AI stocks are pumping like crazy and gold is dumping. Essentially flexible tech is preferred to stable and inert metals.
ETHBTC has almost completed a breakout, as it hasn't fully reclaimed all key diagonals and the yearly pivot. It has reclaimed all critical support, penetrated the 0.06-0.066 area, which I was expecting to happen for a while, and is now looking solid.
Someone could go long now, with a stop loss below 0.064 or waiting for the full breakout. Someone could wait before going long for BTCUSD and ETHUSD to have a failed breakdown by hitting 25700$ and 1720$, respectively.
Trade closed: stop reached
Clearly, this trade failed. Now the market is near support for ETH, and we don't want to reject ETH relative to BTC.My long-term target for ETHBTC is 0.04, but I am aware positive news can come out for ETH.
Being overweight BTC makes sense as an ETF is coming, but an ETH ETF will eventually come too.
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