Ethereum Price Will Outperform Bitcoin
The ETH/BTC pair broke out from a descending resistance line (white) on July 27 and reached a high of ₿0.086 on Sept. 7. Afterward, it returned to validate it as support on Sept. 22 (green icon).
Since the validation, the Ethereum price has traded inside a symmetrical triangle, considered a neutral pattern. However, since it transpires after an upward movement, a breakout from it would be the most likely scenario. A breakout traveling the entire triangle’s height would lead to a high near ₿0.094.
There are two other readings that support the possibility of a breakout.
Firstly, the ETH price bounced at the 0.5 Fib retracement support level at ₿0.067, creating a long lower wick in the process (green circle). As long as it is trading above the 0.5 Fib retracement support level, the trend can be considered bullish.
Secondly, the movement inside the triangle resembles a completed, complex W-X-Y correction (black). If so, a breakout from the triangle would be the most likely scenario.