- The increase in Ethereum against Bitcoin has signs of invalidation, with ETH/BTC being close to the critical level of 0.04 BTC.
- A further push towards $61-62k in Bitcoin is applying more pressure on Ethereum regarding selling.
- The level of 0.04 BTC is significant for Ethereum because if it breaks down, it will mean deeper declines and more bearish pressure.
ETH is currently under massive selling pressure as the bullish divergence is deemed to be in the process of being negated against BTC. The ETH/BTC trading pair has been hovering just above the crucial 0.04BTC level for some time now.
Clear invalidation is taking place on $ETH for the bullish divergence as it’s on the fence of dropping sub 0.04 BTC.
We’ll drop down some more if Bitcoin shows momentum to $61-62K. pic.twitter.com/17w1mWSgiD
— Michaël van de Poppe (@CryptoMichNL) September 12, 2024
If it deteriorates further, the decline could be attributed to bearish sentiment for Ethereum with the help of Bitcoin moving upward. As Bitcoin displays potential for movement towards $61-62K, the focus shifts to Ethereum as its actions may prove decisive.
Ethereum Bullish Divergence Validation
Ethereum’s recent price movement has invalidated this pattern, and if traders observe the bullish divergence scenario, they can now be sure that it is no longer valid. While Ether is trading just below 0.04 BTC, there is an increasing probability of a breakdown below this level for Ethereum.
The single biggest reason for this decline seems to be the rise in Bitcoin’s price again in recent days. If Bitcoin is to maintain its upward trajectory, Ethereum will likely come under more selling pressure, threatening the 0.04 BTC level.
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The Influence of Bitcoin’s Momentum
The current Bitcoin price rise towards $61-62K could significantly affect Ethereum’s price movements in the short term. A bullish BTC has always pushed capital back to BTC from other cryptocurrencies such as ETH. This is because the more Bitcoin gains value, the more investors pour capital into BTC rather than altcoins; thus, underperformance is witnessed.
In this case, Ethereum, as observed in the recent past, has a bearish signal that may trigger a selling spree in the market.The 0.04 BTC support level is significant for Ethereum since a break below this level could imply further declines. Traders are observing this level as its breakdown may result in Ethereum testing lower support levels. In this case, Ethereum will be under immense pressure to sustain the current levels in case of a persistent rise in Bitcoin. While Bitcoin seems to be growing stronger, Ethereum remains volatile and unpredictable, with the bulls unable to reverse the trend.
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