ETH/BTC Price Prediction: Is Ethereum Price Reversing or Is It a Bull Trap?

ETH/BTC - Ethereum price

Ethereum price increased by 5.6% in the last 24 hours to trade at around $3,070 during European business hours. The increase comes against the backdrop of Germany’s continued Bitcoin sell-off. BTC also saw an increase of 3.4% over the last 24 hours, and is trading at $57,189.

CRYPTO MARKET

Ethereum Price To Rebound If This Happens

Ethereum Price

ETH price broke below a falling channel on Thursday last week, a non-bullish move on its part. Ethereum price plummeted to a low of $2,811 as Bitcoin continued to bleed. However, ETH price found another support below around $2,815, using it as a cushion against the fall. The price of ETH consolidated around this local bottom over the weekend before showing some renewed strength on Monday going into Tuesday.

The Ethereum price action has revisited the 200-day simple moving average (SMA), which is currently acting as a resistance. If Ethereum breaks above this key indicator, market sentiment may turn to bullish.

Ethereum price prediction shows the asset may likely break above the 200-day SMA but succumb to the overhead 50-day SMA, falling into a consolidation zone between $3,371 and $2,811. This will also put it back into the falling channel. 

If ETH bulls can exert more power, they can break above the falling channel and the potential consolidation zone to hit the previous yearly high of $3,967. On the flip side, if the bears prevail, ETH price may break below the $2,815 support and drop lower to $2,200, with temporary cushioning around $2,490.

On the other hand, Bitcoin price hit a low of $53,550 in the recent sell-off (which may still be in play) before bouncing back, as data from CoinGecko shows. The asset seems to have found support around the $55,000 level, though history suggests this may not hold for long. If BTC continues to fall, the next major support is around $50,000, and below that, $46,000.

Why is Ethereum Price Rising?

The markets today have spots of green, with Ethereum among the biggest gainers. VanEck was the last to file an S-1 for its spot Ethereum ETF yesterday, indicating a high likelihood of ETF approval soon. As of July 9, 2024, all spot Ethereum ETF applicants have filed their updated S-1s.

Meanwhile, while Germany continues to sell Bitcoin indiscriminately, ETFs saw $384 million in inflows last week, showing that investors are using the fear in the market to get exposed to BTC at discounted prices.

Bottom Line

Ethereum’s price movement shows signs of a potential reversal, but uncertainty lingers as market participants debate whether this uptick represents a genuine trend change or a deceptive bull trap. Close monitoring of key indicators may provide clarity on whether ETH can sustain its momentum relative to BTC in the coming days.

The post ETH/BTC Price Prediction: Is Ethereum Price Reversing or Is It a Bull Trap? appeared first on CoinGape.


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