Ethereum/Bitcoin Uptrend Begins

Ethereum has been outperformed by Bitcoin starting from June of this year when price topped at BTC 0.15. Since then Ether lost to Bitcoin 75% while it moved as low as BTC 0.04 where it finally found the support.

ETH/BTC has rejected the 461.8% Fibonacci retracement level applied to the corrective wave after the breakout of the support at BTC 0.067. The precise price is BTC 0.038 that has been rejected three times. At the same time, a bullish divergence was formed on the MACD suggesting trend reversal.

After that ETH/BTC went up sharply and gained 40% while breaking above the long-term downtrend trendline. The correction has followed and price rejected the downtrend trendline but this time it acted as a support.

These could be first signs of the trend reversal where Ethereum could start gaining against Bitcoin in the medium to long-term. Although it remains a risky purchase at this time as more confirmations would add more confidence to the ETH strength. Break above the BTC 0.055 resistance should be enough to add the required confidence. Only a daily close below the BTC 0.037 would invalidate this outlook.

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