This is a technical analysis article written by CoinDesk Analyst and Certified Market Technician Omkar Godbole.
It’s unusual to see ether the world’s second-largest cryptocurrency by market capitalization, showing relative strength against market leader Bitcoin on a day when the market is under pressure.
Today is exactly this rare case. While Bitcoin slipped more than 2% on the day to around $97,200, ether remains largely stable near $3,230, according to data source CoinDesk. This divergence caused the ether/bitcoin (ETH/BTC) ratio to increase by more than 2%, signaling ether’s outperformance.
With that in mind, here are three key charts worth watching.
ETH/BTC ratio
The ratio listed on Binance is currently confined in a counter-trend bearish channel, reflecting a pause after the strong rally observed between May and August. The slope of this channel is relatively gentle, suggesting that the price action is more of a consolidation phase than a true downtrend.
Thus, a breakout of this channel would confirm a new investor bias in favor of ether over bitcoin, suggesting further upside potential for the ETH/BTC ratio. Interestingly, the ratio’s MACD histogram appears poised to cross zero, signaling a potential bullish momentum shift.
Ether
Like the ether-bitcoin ratio, the dollar-denominated ether price is also moving in a counter-trend downtrend channel, with signs of seller exhaustion near $3,000, as evidenced by the long tails attached to recent daily candles.
This suggests potential for a price rebound, although a clear breakout of the channel is needed to confirm a broader bullish outlook.
XRP/BTC
A potential rally in ether, widely considered the leading altcoin, could spark a rally in other major tokens, particularly in the relationship between payments-focused XRP and bitcoin.
The ratio continues to roll over a four-year range, building momentum for a significant breakout. If ether rises, it could act as a catalyst for a bullish resolution in the XRP/BTC ratio, potentially triggering notable gains.
