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Leading cryptocurrencies Bitcoin ($BTC), Ethereum ($ETH), and altcoins are experiencing a major correction.
At this point, $BTC has fallen below $95,000, while $ETH finds support around $3,100.
While there are analyses suggesting that the correction could deepen further, one analyst noted that Ethereum remains relatively robust against Bitcoin.
Accordingly, market analyst Omkar Godbole said that Ethereum has been relatively strong against Bitcoin despite the ongoing strong correction in the market, which is unusual.
Pointing out that the $ETH/$BTC ratio increased by more than 2% in a single day, the analyst stated that the increase in the $ETH/$BTC ratio is an indicator of the relative strength of Ethereum.
The analyst noted that the $ETH/$BTC ratio is stuck within a reversal downward channel, reflecting a pause following the sharp rise observed between May and August. A breakout from this channel would reaffirm investors' preference for Ethereum over Bitcoin and suggest further upside potential for the $ETH/$BTC ratio.
“…Interestingly, the MACD histogram of the $ETH/$BTC ratio appears poised to break above zero, signaling a possible uptick in momentum.
If Ethereum's strength against Bitcoin continues, the positive effects could spill over to other major altcoins.”
Ethereum Price Also Points to a Breakout!
The analyst said that, like the $ETH/$BTC ratio, the Etheruem price is also moving in a downward channel in the opposite direction to the dollar.
“This data suggests the price has the potential to bounce, but a clean breakout from the downward channel is needed to confirm a broader bullish outlook,” the analyst said, noting that there are signs of exhaustion from sellers around $3,000.
A Break in Ethereum Could Also Boost $XRP!
The analyst also recently analyzed the $XRP/$BTC ratio. According to the analyst, a strong breakout in Ethereum could be a significant catalyst for the $XRP/$BTC ratio.
Stating that the $XRP/$BTC ratio has also accumulated potential volatility, the analyst said that this ratio has been stuck in a wide horizontal band for four years.
Stating that this squeeze in the $XRP/$BTC pair indicates energy accumulation before a strong move, the analyst said, “If the Ethereum rally strengthens, this could also revitalize the $XRP and altcoin markets. The upward breakout that has been awaited for years in the $XRP/$BTC pair could occur. This could lead to strong gains in the $XRP price.”
*This is not investment advice.