At the moment ETHBTC is at key support and doesn't look either very strong or very weak. However ETHUSD is gearing for a big breakout. It is just 10% away from a new ATH, while it keeps testing the 4k resistance. 3.6-3.7k turned into support and the market looks really strong.
For ETHBTC it remains to be seen whether Ethereum and most alts take a backseat as BTC rallies alone. Alts had rallied for a really long time, so for now we could simply see BTC rally for the next 2-3 months and see it completely dominate alts. There are two key levels for ETHBTC to the downside which are 0.052 and 0.04. The first one is just an untested level, while 0.04 is where ETH started its big rally after breaking above the huge inverse head and shoulders pattern it formed earlier since late 2018 up until early 2021. Retesting that breakout zone would be ideal for buying as the price would have dropped 50% from its recent highs and 33% from here, which are pretty reasonable corrections based on historical patterns.
However it is still early to tell which path the market will take. There are tons of bullish things going on for Ethereum at the moment, like ETH 2.0, Layer 2 scaling solutions, NFTs, EIP 1550, DeFi 2.0 and so on. At the same time we could see a futures ETF for Ethereum too at some point in the not so distant future, while the full launch of ETH 2.0 is potentially just 6 months away. Therefore if ETHBTC starts reclaiming 0.067 and even 0.07 we could see it begin its final leg to the upside and potentially overtake Bitcoin in terms of market cap.
For ETHBTC it remains to be seen whether Ethereum and most alts take a backseat as BTC rallies alone. Alts had rallied for a really long time, so for now we could simply see BTC rally for the next 2-3 months and see it completely dominate alts. There are two key levels for ETHBTC to the downside which are 0.052 and 0.04. The first one is just an untested level, while 0.04 is where ETH started its big rally after breaking above the huge inverse head and shoulders pattern it formed earlier since late 2018 up until early 2021. Retesting that breakout zone would be ideal for buying as the price would have dropped 50% from its recent highs and 33% from here, which are pretty reasonable corrections based on historical patterns.
However it is still early to tell which path the market will take. There are tons of bullish things going on for Ethereum at the moment, like ETH 2.0, Layer 2 scaling solutions, NFTs, EIP 1550, DeFi 2.0 and so on. At the same time we could see a futures ETF for Ethereum too at some point in the not so distant future, while the full launch of ETH 2.0 is potentially just 6 months away. Therefore if ETHBTC starts reclaiming 0.067 and even 0.07 we could see it begin its final leg to the upside and potentially overtake Bitcoin in terms of market cap.