In a red week for crypto, Ethereum is down 13%.
That is, against Bitcoin, not against the dollar!
Yashu Gola reports at Cointelegraph on the ETH coin’s volatile downward action, and what it means for the crypto market.
“Ether (is) … now trading 65% lower than its record high of around $4,870 in November 2021,” Gola writes. “Similarly, Bitcoin is down 63% from its all-time high of $69,000 in the same period.”
Gola also describes a “rising wedge breakdown” that could have an effect on this market cycle.
“ETH/BTC’s latest decline has had it break below its prevailing rising wedge pattern, suggesting the pair’s technical downside target could be much lower than May 12’s local lows,” Gola writes. “That’s because rising wedges are bearish reversal patterns that typically send the price lower by as much as their maximum height when measured from the breakdown point. Hence, the ETH/BTC rising wedge’s breakdown target comes to be near 0.064 after adding the structure’s maximum height, usually around -0.009 BTC, to the breakdown point of 0.073 BTC. As a result of Ether’s slightly limited decline compared to Bitcoin’s, ETH/BTC has shown resilience despite the market downturn in 2022. Nonetheless, the pair now shows signs of catching up to the bearish trend, suggesting more pain ahead.”
In terms of its dollar value, ETH is down a full one third of its price from a month ago.
Meanwhile, Bitcoin is also down about 27%, and well short of its desired price point at $40K, but a metric for market dominance is a contradictory indicator of sorts.
It seems, according to the analysis, that in the scramble to shield assets from downturns, more people are sticking with Bitcoin than with ETH or other altcoins, considering it more of a “safe haven” than, say, $LUNA. Let’s see what that means for BTC this week, as traders look for an advantage.