Key Takeaways:
- ETHBTC pair seems to have formed a rounding bottom on the charts.
- ETH prices inched closer to $4,000 on Thursday.
- Billionaire investor Mark Cuban believes Ether has the most upside than any other crypto.
NEW DELHI (CoinChapter.com) — Ethereum, the second-largest cryptocurrency by market cap, has strengthened its stature against Bitcoin. According to Twitter-based crypto analyst il Capo Of $NOIA, the ETH/BTC pair has formed a bullish pattern, dubbed “saucer,” or rounding bottom pattern, on its three-day chart.
As such, ETH could go up to reach nearly 0.195 BTC after rising by nearly 198% from its current levels. Other altcoins would likely follow suit with the Ethereum token going up, setting up an “Altseason.” In detail, an altseason defines a cryptocurrency market cycle in which several altcoins rise against the dollar and BTC simultaneously.
Ethereum is currently enjoying several fundamentals fueling its bullish upwards rally. A report by digital assets data provider Crypto Compare pointed out that institutional interest in crypto asset manager Grayscale’s Ethereum Fund(ETHE) increased last month.
As per the report, investors favored the ETHE over Grayscale’s Bitcoin product (GBTC) in September. Grayscale’s Ethereum fund saw an average daily trading volume of $250 million, increasing 29%. Moreover, Ethereum-based products reached their highest share of AUM (25.9%).
The movement suggests investors are looking for alternatives to Bitcoin to expand their crypto exposure.
Ethereum Price Action
The rounding bottom pattern that ETHBTC formed is nearing breakout as prices are consolidating within the 0.55 BTC to 0.76 range. Meanwhile, ETHUSD is trying to breach and consolidate above $4,000. A move above $4,000 would put ETH less than16% away from its current ATH.
Ethereum needs to breach and close above the $4,000 to ensure the upside movement doesn’t see an immediate pullback. However, ETH has tested the $4,000-resistance only four times since May and has not closed above the key resistance after May 15.
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The token’s recent price action further indicates the likelihood of an upcoming altseason, as ETH gained nearly 28% in the last 15 days.
However, intense profit-taking pressure from traders who bought ETH near the top of its ATH might mean it would take Ether some time to consolidate above $4,000.
If bulls breach immediate resistance, ETH could go up to $4,186 before suffering any pullbacks. Moreover, strong buying sentiment could bring ETH to $4,408 before the resistance caps further upside movement. ETH is bullish across all time horizons, trading above its 50 and 200-day moving average trendlines.
On the other hand, ETH can find immediate support at $3,600, a resistance that ETH flipped into support in its latest bull run. In addition, Ether’s 26-day EMA provides the token support at $3,422.
The recent run also infused new life into the waning MACD histogram. The histogram plots the difference between the MACD line (difference between 12-day and 26-day EMA) and its signal line (9-day EMA of MACAgain, increasing sign bars on the graph highlight an increase in the bullish momentum for ETH.
Billionaires Back Ethereum
Ethereum is gaining supporters with some deep pockets, which bodes well for the altseason’s arrival. Billionaire investor Mark Cuban believes Ethereum ‘has the most upside’ out of all the available cryptocurrencies in the market. The Dallas Mavericks owner was answering questions in CNBC’s Make It show.
Also Read: ETH nears $4K as Mark Cuban calls Ethereum as the most upside crypto investment.
The billionaire investor praised Bitcoin, calling the OG crypto ‘a better gold than gold‘ due to its algorithmic scarcity.
In April, Mr. Cuban said that smart contracts on Ethereum changed everything, referring to a collection of codes that run on the Ethereum blockchain. Smart contracts are the backbone behind DeFi, DAppsa, and NFTs. Moreover, the “Shark Tank” investor also lamented he didn’t invest in Ether sooner an interview, the r.
CEO of Starwood Capital Group, Barry Sternlicht, recently admitted that his portfolio includes Bitcoin. Despite believing cryptos to be ‘crazy volatile,’ the billionaire invested in the top two cryptocurrencies for inflation protection.
The reason I own bitcoin is because the US government and every government in the western hemisphere is printing money now to the end of time. And this is a finite amount of something and it can be traded globally.
Barry Sternlicht, CEO, Starwood Capital Group,
Mr. Sternlicht stated that Bitcoin’s USP lies in its limited availability, calling Bitcoin an instrument against the mass printing of fiat currencies. Additionally, he described Ether as ‘a programable bitcoin’ having more use cases than Bitcoin.
With Bitcoin’s Taproot update in November bringing smart contract capabilities on the oldest blockchain and Ethereum’s Altair upgrade bringing the long-awaited proof-of-stake consensus mechanism, both the cryptos seem poised to chart new ATHs before entering 2022.
At the time of writing, ETH was trading at $3,824, up 0.92% since trading started.
