 ▲ Ethereum (ETH) |
Cointelegraph, a cryptocurrency media outlet, reported that Ethereum (ETH) will rise by up to 50% compared to Bitcoin (BTC) within the year based on the results of inverse head and shoulders (IH&S) pattern analysis.
The IH&S pattern is a pattern in which three low price troughs are formed below the universal neckline resistance. Usually, the price trough formed in the middle falls to a lower range than the other two.
The media presented TradingView's ETH/BTC chart and explained that they were waiting for an extended rise toward the neckline resistance at 0.061BTC as of the 17th (local time). Afterwards, it was expected that there would be a slight price retreat and a price recovery for the neckline retest.
Overall, if it succeeds in breaking through the neckline, the ETH/BTC trading price is likely to reach 0.084BTC by the end of the year, up 50% from the current level.
The media reported in another article that Ethereum's strength against the dollar is still in effect around $3,500.
The reason for this was the decreasing trend of Ethereum supply on exchanges announced by CryptoQuant. According to CryptoQuant, over the past 90 days, Ethereum's exchange supply has fallen 9.3% to 16.7 million ETH, the lowest in five years.
It was also confirmed that the balance of Ethereum inflow and outflow from centralized exchange wallets decreased between May 20 and June 14. During this period, the amount of Ethereum withdrawals on the exchange increased by 14%.
Typically, a decrease in the supply of an asset on an exchange suggests that investors are not willing to sell the asset in anticipation of a rise in price.
CoinGlass data, which shows that open interest (OI) increased from $15.06 billion to $16.15 billion as of June 14, also supports the strength of Ethereum. Ethereum open interest decreased below $12 billion as of April 14, but recovered to the $12 billion level as of May 21. Since then, Ethereum's open interest has increased by approximately 36% in 30 days. This suggests an increase in demand for leveraged Ethereum.
In addition, it can be noted that the Ethereum trading price fell between June 10th and 14th, creating a low low, but the relative strength index (RSI) rose. The prospect that Ethereum spot exchange-traded fund (ETF) trading will begin in early July in the U.S. market appears to have had some influence on bullish expectations.
