Ethereum fails to break out vs. Bitcoin as Treasury yields soar — Will ETH relief rally?
Ether (ETH), the original Ethereum crypto-currency, has failed to gain ground against Bitcoin (BTC), with BTC/USD rallying on the 18th. March was above 8%.
There are two likely reasons why the ETH/BTC pair is failing to break through a key resistance level.
Firstly, BTC has jumped in a short period of time after much of the market has been short in recent days, outperforming most alternative cryptocurrencies.
Secondly, the general macroeconomic environment in the risk-adjusted market is deteriorating due to the sharp rise in 10-year US government bond yields, which have just reached a 14-month high of 1.75%. This could increase selling pressure on alcoins, which generally have lower volume and liquidity than BTC.
TheETH was rejected at the key level, despite the bullish development of thechain.
According to trader aka Trader XO, ETH is rejected at a key level in the ETH/BTC chart.
The trader pointed out that ETH needs to stay above the low support area at 0.029 BTC to keep the short-term bull market structure intact.
ETH/BTC pair with key levels. Source: TraderXO, TradingView.com
If the ETH rallies from the lows around $1,720 on the ETH/USD pair, it has a better chance of continuing the rally. He said:
$ETH – Rejected by the center, as expected. Ideally, the floors would be kept here. I wouldn’t mind a divergence from low either – it would give me more confidence to jump on #Ethereum Wait patiently for structure to form before jumping. First, more pages.
Despite ETH/BTC’s stagnation, analysts note that Ethereum’s fundamentals and blockchain data remain very bullish.
A pseudonymous Ethereum analyst and investor known as DCinvestor noted that the upcoming EIP-1559 offering and proof of acceptance (PoS) on Ethereum will make ETH more scarce.
These two factors, combined with the decline in ETH holdings across all exchanges, as previously reported by Cointelegraph, generally paint a bullish outlook for ETH over the medium term. The analyst noted:
With the advent of EIP-1559 and Proof of Stake, the $ETH supply may never exceed 120M tokens, which is extremely small given the absurdly low utility ~5.7x over $21M to $BTC, but it is sustainable and about 20x more useful than programmable money and collateral.
Macro landscape, commercial crops always refer to
The momentum in the 10-year US Treasury yield is likely the main catalyst for the weakening of bitcoin and ETH over the past 12 hours, as shown by the inverse correlation in the chart below.
BTC/USD (blue) vs ETH/USD (orange) vs TY10 (light blue). Source: Eyes on the case.
Portfolio managers and strategists have expressed concern about the overheated bond market and its potential negative impact on the risk market.
Hinesh Patel, portfolio manager at Quilter Investors, said:
While there is no answer at this time, this could be the only step towards an offer. Whatever Powell is doing at the moment, the Fed is putting bond markets at risk. If they do nothing, the bond market will continue to drive up interest rates while waiting for the Fed to increase or adjust its bond purchases, while if they act now, they will be accused of overstimulation and being too behind the curve.
Bitcoin, Ethereum and the rest of the crypto market can separate themselves from the risky market and stocks. Ideally, however, U.S. Treasury yields would stabilize, so the crypto market would enjoy a steady uptrend for the foreseeable future.
frequently asked questions
How much will the ETG cost in 2030?
ETH faster than BTC?
Transactions on the Ethereum network are much faster than on the Bitcoin network. Bitcoin is primarily a store of value and a medium of exchange, while Ethereum is not.
Will Ethereum reach $1,000?
Ethereum, like all cryptocurrencies, has seen many ups and downs, but has not hit the $1,000 mark since January 2018. However, ETH’s all-time high is $1400, which was reached in 2017. … Analysts are optimistic that Ethereum will overtake Bitcoin by 2020.
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