Why Ethereum Traders Are Watching ETH/BTC Charts Closely – Spoiler alert, it’s bullish.

Ether (ETH) is currently showing its most significant weekly gain since May 2024. Over the past 24 hours, BTC's momentum has stalled, ETH's price has hit a quarterly high of $2,956, and renewed price action has led to a 6% gain in ETH/. BTC chart.

With Ethereum briefly leading Bitcoin (BTC) for the first time in months, the altcoin-BTC pair may be reversing the trend that grabbed the market's attention.

Ethereum breaks above 161-day bearish trend line.

A critical daily breakout on Ether's daily chart is one of the key reasons for reviving interest in the ETH/BTC trend.

As shown in the chart, Ethereum recorded a record above the 161-day downtrend on November 6, which triggered a positive market sentiment. A bearish trend has been active since May 2024, and ETH's movement above a bearish resistance pattern has signaled a revival for bullish investors.

With Bitcoin hitting new all-time highs and the ETH/BTC chart falling from 2021 levels, Marzel, an independent crypto trader, highlighted that ETH/BTC currently shows “the best buying opportunity for ETH in 4 years.”

ETH/BTC eyes closed above 50-day SMA daily.

In an initially optimistic beer, Benjamin Cowen, a crypto technical analyst, pointed out that for the downtrend of ETH/BTC, the trading pair needs to close the daily position above the 50-day simple moving average (SMA) indicator.

As noted on the chart, ETH/BTC has been below the 50-day SMA for most of 2024, only a short tick above the indicator in Q1. A daily close above 0.04 leads to a breakout of structure (BOS), which can cause a market reversal for the ETH/BTC chart.

Meanwhile, anonymous market analyst Freddie remains on the fence and,

“Each ETBTC pump has been a domestic high of more than 5% this year (except August).”

Related: Why Has Ethereum (ETH) Price Paid Up Today?

TOTAL3 hits key resistance via ETH, ETHBTC.

Technical analyst Cryptochill has observed that the daily chart of ETH, ETBCC and TOTAL3 will test a key resistance level together. The TOTAL3 market cap represents all crypto assets excluding Bitcoin and Ethereum, so it is the main chart for other altcoins.

ETH + ETHBTC

A key resistance has been reached on the daily chart. If these resistances are broken, the possibility of a strong upward movement may increase.

This could also trigger a breakout of the 3 key resistance, causing altcoins to start a sharp rally. pic.twitter.com/cpiUJP0VTT

— ⓑ (@CryptoChille) November 7, 2024

From a technical perspective, the trading pair ETH/BTC also shows significant monthly bullish divergence. When the relative strength index and stochastic RSI break out of the oversold range, the probability of a sustained increase based on historical results increases.

Related: Ethereum Holder Turns $38K Into $30M After 8 Years

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.