- August 31, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The Ethereum blockchain native asset broke its downward sloping resistance trendline to the upside, triggering a textbook bullish outlook.
Ethereum’s native token Ether (ETH) faces the prospect of logging a 40% price rally against its top rival Bitcoin (BTC), per a classic technical pattern.
Dubbed Symmetrical Triangle, the structure develops after the price forms a series of higher lows and lower highs. Doing so results in a convergence of two trendlines with a degree of symmetry, which appears like a Triangle.
Analysts treat Symmetrical Triangles as trend continuation indicators, i.e., they usually send prices in the direction of their previous trend following a clear breakout. As a result, the ongoing ETH/BTC price boom expects to undergo an upside continuation after having fluctuating inside a similar Triangle structure for the last four months.
Part of the reason is Ether’s attempt to break above its Triangle consolidation setup, after rising seven weeks in a row by 179%. If it does, the ETH/BTC exchange rate could rise by as much as the Triangle’s maximum height (~0.025 BTC) from the point of its breakout (~0.069 BTC).
That puts the pair’s profit target near 0.094 BTC, about 40% above 0.069 BTC.
Ether’s outperformance
Ether’s bullish outlook against Bitcoin emerges as it outperforms the benchmark cryptocurrency in dollar terms on an intraday basis.
On Tuesday, the ETH/USD exchange rate rose 6.61% to $3,442, its highest level in three months. Comparatively, Bitcoin posted dwarfed gains, rising only 2.5% to $48,169, portraying a higher interim demand for Ether tokens among traders.
Dmitry Mishunin, founder and CEO of smart contract audit firm HashEX, projected Ethereum and similar “smart contract-enabling blockchains” to keep outperforming Bitcoin in the long run, citing their superior utility.
“The duo of Cardano and Ethereum has the propensity to harbor countless innovative projects,” Mishunin said, adding that Ethereum has the potential to flip Bitcoin in the long run.
“Bitcoin only relies on its capped supply and the first-mover advantage, a trend many investors are beginning to substitute for unique technology that can drive a blockchain-dominated future.”
Jon Ovadia, founder, and CEO of crypto exchange Ovex, also said that Ethereum has better fundamentals than Bitcoin at this moment, largely due to its recent network update that aimed to add deflationary pressure to Ether through a fee-burning mechanism.
Thus far, about 146,878.7 ETH (worth approximately $492.3 million) have been burnt from the total circulating supply,” Ovadia said, adding that:
“The potential for a more superior Proof-of-Stake infrastructure through the highly anticipated launch of Ethereum 2.0 will also make the blockchain more usable, thus driving the coin’s utility and its price growth.”
Bitcoin outlook, meanwhile
So far into 2021, Ether has grossly outperformed Bitcoin due to its incremental adoption in the booming decentralized finance and nonfungible token industries. As it stands on Tuesday, the year-to-date profits for Ether are 373% versus Bitcoin’s 63.55%.
Related: Bitcoin rejects $51K after Michael Saylor reveals new BTC purchase — What’s next?
Nevertheless, Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, said Bitcoin would eventually catch up to Ethereum’s gains, thus leading to $100,000 by the end of 2021, more than double where it is trading at the time of writing.
Fundstrat Global Advisors’ Tom Lee also envisioned a six-figure bid for Bitcoin as long as it stays above its average price over the last 200 days — a long-term momentum measure.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
