Ethereum (ETH) drops to the 5 Week EMA against Bitcoin (BTC) but it could fall further to test the 21 Week EMA. That level is not likely to be breached and the price is expected to begin a recovery from there. The support we currently see for ETH/BTC on the weekly chart goes way back before 2017 when it was once a resistance. The price successfully pierced through this level in March, 2017 and this resistance turned into a long term support that the price successful tested once in December, 2017 and then again in December, 2018. Both of these times, this level held strongly and the price bounced off strongly after testing this level.
The weekly chart for ETH/BTC shows that Ethereum (ETH) has been trading in a descending triangle against Bitcoin (BTC) for almost two years now. This means that Ethereum (ETH) is now expected to break its downtrend and begin its climb against Bitcoin (BTC) in the months ahead. The circumstances for this rally against Bitcoin (BTC) couldn’t have been better. Ethereum (ETH) is about to go forward with its Constantinople upgrade which will prepare it for a smooth transition to Proof of Stake (PoS) from Proof of Work (PoW). This transition to Proof of Stake (PoS) is expected to make the Ethereum (ETH) blockchain more appealing to developers as well as investors. Dapp development activity on Ethereum (ETH) is also expected to rise after this transition.
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