Ethereum was priced at 0.085 against Bitcoin in September 2022. This pair’s value kept nosediving and created a low of around 0.060 last week. This translated to a 30% dip. However, the current conditions point towards a trend reversal. On the weekly timeframe, ETH/BTC is attempting to break out of a falling wedge pattern.
Under this setup, as the price approaches the converging lines, it usually marks the final downward move. This is because the lower bottoms and even lower tops indicate that bears are losing momentum, and bulls are gradually stepping into the arena, trying to apply brakes to the rate of decline. Going forward, if the breakout above the upper trend line is successful, a new bullish spark in the ETH market could be ignited.
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The ETH/BTC breakout seems to be impending, but will that happen anytime soon? Let’s delve into on-chain data to analyze that.
Is there enough momentum in the ETH market?
ETH exchange net flows have been in the red over the last few days. This essentially means that the buy transactions are outweighing the sell transactions. Even though this is an optimistic development, it should be noted that the buy volume is not significant at this stage. Over the last two days, the net figure has only been hovering around 17,000 ETH, while at press time, the number was even more malnourished and flashed a value of 793 ETH. In the past, ETH’s price has been able to make progress only when much deeper deviations have been registered. Thus, it is quite pivotal at this stage for the momentum to intensify.
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Furthermore, PeckShield recently alerted the crypto community by highlighting that ETH co-founder Vitalik Buterin had transferred $1 million worth of ETH to Coinbase a few hours ago. Even though the nature of the transaction is not yet known, speculation points to the possibility that Buterin could be selling. In fact, people have already started labeling this transaction as the beginning of the dumping season. Thus, it is equally imperative for ETH to successfully navigate through this period of Fear, Uncertainty, and Doubt.
That being said, ETH has no immediate on-chain barrier at the moment. The next largest hurdle for the asset only lies in the range between $1901 and $2660, where 9 million addresses have bought close to 37 million ETH.
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