Although institutional interest has undeniably been focused on Bitcoin, Ethereum’s lower cost of entry and unstoppable momentum, have allowed the altcoin to outperform the top crypto asset by market cap recently.
A near flawless technical pattern yet to break out coinciding with a trend strength measuring tool approaching pivotal levels, suggests Ethereum’s dominance over BTC not only will continue for the time being, but the intensity will soon increase substantially.
Ethereum Breaks All-Time High, Restores Hype In Altcoins
Ethereum this week finally surpassed its former all-time high of $1,400 set back in January 2018. Bitcoin’s waning momentum has turned capital flows toward the second-ranked cryptocurrency and top altcoin ever since.
Related Reading | Ethereum Open Interest Reaches All-Time High Alongside Record Breaking Rally
Dmytro Volkov, CTO of CEX.IO says that although Bitcoin trading volume has “doubled” recently on renewed “hype,” Ethereum trading turnover on the platform has increased three-fold during the same timeframe. The ETHUSD trading pair specifically soared to over five times the average trading volume, accounting for as much as “20%” of the platform’s total volume.
Top industry analysts expect Ethereum price to follow the trading volume and double now that the record has been smashed, much liked Bitcoin did. But that’s not the only pattern that the altcoin could soon repeat.
Ethereum could soon repeat Bitcoin's breakout | Source: ETHBTC on TradingView.com
Ethereum could soon repeat Bitcoin's breakout | Source: ETHBTC Forms Near Flawless Technical Pattern On The Verge Of Powerful Breakout
The chart pictured above shows the symmetrical triangle pattern formed over the last several years between the altcoin and top cryptocurrency.
After the first year of price action, the trend has mostly favored Bitcoin. But that is all about to change. Much like Bitcoin’s enormous breakout against the dollar once it smashed through the top trendline of the triangle, Ethereum is ready to do the same against BTC.
And given the momentum that Bitcoin has on its own, the rally in Ethereum is poised to be something for the history books.
Momentum is building up pressure below resistance for a strong breakout | Source: ETHBTC on TradingView.com
A breakout appears imminent, backed by building bullish buying pressure and an almost nonexistence presence of sellers, according to the Average Directional Index and the Directional Movement Index. These tools combined show when buyers or sellers are in control, and how powerful the strength of the trend is.
Currently the red line on the DMI has sunk far below the green line. The bullish crossover points to more upside ahead, while the ADX itself growing to above 20 suggests the trend is only starting.
Related Reading | Capital Manager: Ethereum Will Double In Two Weeks Once ATH Is Broken
A coinciding inverse head and shoulders and rounding bottom formation has built a base at which Ethereum will launch against Bitcoin from.
Unless there’s a sudden and sharp reversal across the board, the top altcoin will give Bitcoin a run for its crypto market dominance in the months to come.
Featured image from Deposit Photos, Charts from TradingView.com
