Ethereum Extends Strength Against Bitcoin as ETH/BTC Jumps 25% in Two Months

• Ethereum’s ETH/BTC ratio has risen about 25% since its June 6 low, extending its stronger performance against Bitcoin.
• A golden cross has formed on ETH/BTC as the 50-day moving average crossed above the 200-day moving average, a signal often interpreted as pointing to a continued uptrend.
• Still, past golden cross signals on ETH/BTC have produced mixed results, with the pair sometimes surging sharply and at other times falling soon afterward, meaning the pattern is not a definitive guide to future moves.

Forecast Trend Report by Period

Ethereum has outperformed Bitcoin over the past two months, and a new technical signal suggests that relative strength could persist.

CoinDesk reported on August 24 that the ETH/BTC ratio, which measures Ether’s price relative to Bitcoin, has risen about 25% since bottoming on June 6. The move reflects Ethereum’s stronger gains versus Bitcoin since early June.

The ETH/BTC pair has also formed a so-called golden cross, with the 50-day moving average climbing above the 200-day moving average. The pattern indicates short-term price momentum has strengthened relative to the longer-term trend and is typically interpreted as a sign that an uptrend may continue.

A golden cross, however, does not guarantee further gains. Previous instances on the ETH/BTC chart have produced mixed outcomes.

After a golden cross on July 25 last year, ETH/BTC rose about 36% over the following four weeks before reversing into a steeper decline. In February 2021, the pair gained about 93% after a golden cross and climbed to 0.0824 by mid-May that year.

Source: en.bloomingbit.io