Ethereum Underperforms Bitcoin, But Is The ETH/BTC Pair Ripe For A Change?

Ether (ETH) has been underperforming Bitcoin (BTC) by a wide margin. The second-largest cryptocurrency by market capitalization hit a three-and-a-half-year low on September 18 against Bitcoin, last seen in 2021. The big question is whether the low will provide a buying opportunity or will Ether continue to underperform.

Bitcoin has been stuck in sideways price action for several months, but select analysts expect the price to break out of the range and reach new highs in the fourth quarter of this year.

However, analysts do not expect the same with Ether, which is below its lifespan. Polymarket, the world's largest prediction market, shows an 85% chance that Ether will not reach an all-time high in 2024.

It's not all gloom and doom for the ether bulls. Bitwise Asset Management's chief investment officer (CIO) said in a September 17 blog post that Ether could be a “contrarian bet that could reach the end of the year.”

Can Ether Come Back and Surpass Bitcoin? Let's examine Ether's chart against Bitcoin to find out.

ETH/BTC weekly price analysis

The pair's long-term chart shows the formation of a symmetrical triangle pattern, indicating indecision between bulls and bears. The bulls are guarding the defensive line while the bears are putting up a solid defense on the defensive line.

Both moving averages are trending down, and the Relative Strength Index (RSI) is near the oversold zone, indicating that the bears are in command. The ETH/BTC pair may descend to the support line, where buyers are expected to enter.

If the price recovers from the support line and breaks above the moving averages, it suggests that the pair should extend its stay in the triangle for more time. The next trending move may start on a break above or below the triangle. A rally above the triangle gives the pair a pattern target of 0.18 BTC, above the current all-time high of 0.15 BTC.

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ETH/BTC Daily Price Analysis

The pair has been trading in a descending channel for several months, making consecutive low highs and low lows.

A bit positive for the bulls is that the RSI is making a positive divergence and the 20-day exponential moving average (0.04 BTC) is starting to flatten. This shows that the sales pressure may be decreasing.

A break and close above the 50-day simple moving average (0.04 BTC) indicates the start of a downward trend line move. The pair indicates a trend change on the break and closes above the channel.

If the price remains low and breaks below 0.038 BTC, this positive view will be rejected in the near future. That could sink the pair to the channel's support line.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.