Major cryptocurrencies Bitcoin (BTC), Ethereum (ETH), and altcoins are experiencing major corrections.
At the moment, BTC is below $95,000, while ETH has support near $3,100.
While some analysis suggests the correction could deepen further, one analyst noted that Ethereum remains relatively strong against Bitcoin.
Therefore, market analyst Omkar Godbole said that Ethereum remains relatively strong against Bitcoin despite an unusually strong correction in the market.
Noting that the ETH/BTC ratio has increased by more than 2% in one day, the analyst said that the increase in the ETH/BTC ratio is an indicator of Ethereum’s relative strength.
The analyst noted that the ETH/BTC ratio is stuck within a reversal downward channel, reflecting a pause after the sharp rise observed from May to August. A breakout from this channel would reaffirm investors’ preference for Ethereum over Bitcoin and suggest that the ETH/BTC ratio could rise further.
“…Interestingly, the MACD histogram for the ETH/BTC ratio seems poised to cross zero, indicating a possible upward momentum.
If Ethereum’s strength against Bitcoin continues, its positive impact could spill over to other major altcoins. ”
Ethereum price also shows signs of breakout!
The analyst said that similar to the ETH/BTC ratio, Ethereum price is also in a downward channel in the opposite direction to the dollar.
“This data suggests that prices may rebound, but a clean breakout from the descending channel is needed to support the broader bullish outlook,” the analyst said, noting that there are signs that sellers are running out around $3,000.
Ethereum break could also boost XRP!
The same analyst also recently analyzed the XRP/BTC ratio. According to analysts, Ethereum’s strong breakout could be an important catalyst for the XRP/BTC ratio.
Analysts said the XRP/BTC ratio is also accumulating potential volatility, noting that the ratio has remained in a broad horizontal band for four years.
Stating that this squeeze on the XRP/BTC pair indicates energy is building up ahead of a strong move, the analyst said, “If Ethereum’s rally strengthens, this could also energize the XRP and altcoin markets. We could see a long-awaited upward breakout in the XRP/BTC pair. This could lead to a significant increase in XRP price.”
*This is not investment advice.
