Ethereum (ETH) Breaks Above a 161-Day Bearish Trend, Eyeing a Potential Trend Reversal

Ether (ETH) is currently exhibiting its most significant weekly gains since May 2024. While BTC's momentum has stalled over the past 24 hours, ETH's price reached a quarterly high of $2,956.

Major cryptocurrency Ether (ETH) is currently seeing its strongest weekly gains since May 2024. While BTC’s momentum has slowed over the past 24 hours, ETH’s price hit a quarterly high of $2,956, and the renewed price action triggered a 6% uptick for the ETH/BTC chart.

With Ethereum briefly leading Bitcoin (BTC) for the first time in months, the altcoin-BTC pair has garnered attention for a potential trend reversal.

A key factor behind the renewed interest in the ETH/BTC trend is a pivotal daily breakout on the Ether daily chart. As observed in the chart, Ethereum broke out above a 161-day descending trendline on Nov. 6, which signaled a positive market sentiment.

The bearish trend has been active since May 2024, and ETH’s movement above the falling resistance pattern indicated a momentum swing for bullish investors.

Moreover, as Bitcoin reaches a new all-time high and the ETH/BTC chart bounces from a 2021 level, Marzell, an independent crypto trader, highlighted that ETH/BTC currently “shows the best buying opportunity for ETH in 4 years!”

With initial optimism brewing, Benjamin Cowen, a crypto technical analyst, noted that for the ETH/BTC trend to bottom, the trading pair needs to close a daily candle above the 50-day simple moving average (SMA) indicator.

As illustrated in the chart, ETH/BTC has been below the 50-day SMA for the majority of 2024, with only brief periods above the indicator in Q1. A daily close above 0.04 would lead to a break of structure (BOS), potentially triggering a market reversal for the ETH/BTC chart.

Meanwhile, Freddy, an anonymous market analyst, remained skeptical and noted:

“ETHBTC looks like it wants to go, but I’m not convinced until I see a daily close above the 50MA (0.0404) or a weekly close above 0.042.”

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TOTAL3 hits key resistance along ETH, ETHBTC

CryptoChille, a technical analyst, observed that the ETH, ETHBTC, and the TOTAL3 daily chart uniformly test a key resistance level. The TOTAL3 market cap represents all crypto assets, excluding Bitcoin and Ethereum, so it is a pivotal chart for other altcoins.

From a technical perspective, the trading pair ETH/BTC also exhibits a significant monthly bullish divergence. With the relative strength index and Stochastic RSI reversing from an oversold region, the probability of a sustained uptrend increases based on historical outcomes.