This is a technical analysis post by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
It is unusual to see ether the world’s second-largest cryptocurrency by market capitalization, showing relative strength against market leader bitcoin on a day when the market is under pressure.
Today is precisely that rare case. While bitcoin is down over 2% on the day to around $97,200, ether remains largely steady near $3,230 per data source CoinDesk. This divergence has lifted the ether-to-bitcoin (ETH/BTC) ratio by more than 2%, signaling ether’s outperformance.
With that in mind, here are three key charts worth keeping an eye on.
ETH/BTC ratio
The Binance-listed ratio is currently confined to a downward countertrend channel, reflecting a pause after the sharp rise observed between May and August. The slope of this channel is relatively mild, suggesting that the price action is more of a consolidation phase rather than a full-fledged downtrend.
So a breakout from this channel would confirm a renewed investor bias in favor of ether over bitcoin, suggesting further upside potential for the ETH/BTC ratio. Interestingly, the MACD histogram of the ratio appears to be crossing above zero, signaling a potential bullish shift in momentum.
Ether
Like the ether-bitcoin ratio, ether’s dollar-denominated price is also moving in a countertrend downward channel, with signs of seller exhaustion near $3,000 as evidenced by the long tails attached to recent daily candles.
This suggests a potential for price bounce, although a clean breakout from the channel is needed to confirm a broader bullish outlook.
XRP/BTC
A potential rally in ether, widely considered to be the leading altcoin, could trigger rallies in other major tokens, particularly in the relationship between payments-focused XRP and bitcoin.
The relationship continues to roll over a four-year period, building momentum for a significant breakout. Should ether rise, this could act as a catalyst for a bullish resolution in the XRP/BTC ratio, potentially sparking notable gains.
