Ethereum Gains Momentum Despite ETH-BTC Ratio Drop

By: Eliza Bennet

Recently, Ethereum (ETH) has shown signs of potential recovery despite the ETH-BTC ratio dropping to its lowest point since April 2021. Ethereum price has gained nearly 5%, breaking above key resistance at $2,900, but it's still lagging behind Bitcoin's surge.

Ethereum started a fresh recovery wave, climbing above the $3,000 mark. The price is trading above $2,950 and the 100-hourly Simple Moving Average. However, Ethereum could struggle to clear the $3,040 and $3,050 resistance levels while Bitcoin is continuing its upward trend.

Technical indicators suggest a potential rebound. Analyst Ali has highlighted a strong buy signal issued by the TD Sequential indicator on Ethereum's daily chart, which anticipates one to four candlesticks of upward movement. Furthermore, the options market has shown a clear preference for calls over puts, indicating bets on Ethereum's price increase. The most popular strike price among these bullish bets is an ambitious $6,500.

Despite the optimistic technical signals, external factors such as regulatory challenges could influence Ethereum's trajectory. The potential decline of the spot Ethereum ETF application with the US Securities and Exchange Commission (SEC) has raised concerns amid speculation that the SEC views ETH as a security, which could lower the chances of ETF approval.