“Since #Bitcoin is taking the lead now, $ETHBTC is normally pulling back Currently testing the neckline for the proposed iH&S (following since months, refer to thread) I want 2 c the neckline holding for potential 50-100% Move up as explained.”
In the near term, ETH could perform strongly against BTC given that Bitcoin cleanly breaks out of the $50,000 resistance area and consolidates above it.
Currently, traders remain uncertain where Bitcoin is headed in the near term, due to the $50,000 resistance area acting as a large sell wall. Hence, a clean break past that level would likely lead ETH to also break out of its current price range.
Analysts at Santiment found that the number of Ethereum whales has declined in the past month as the price of ETH reached a new all-time high.
This metric can be interpreted in different ways. Some could argue that since whales have sold, it shows a bearish trend for ETH in the foreseeable future.
But, considering that ETH is continuing to hit new highs, it can be said that the selling pressure from whales is being absorbed by the market.
“#Ethereum’s top 100 whale exchange addresses are holding the lowest balance of $ETH tokens (~11.4M) in 27 months. This number has dropped along the way to $ETH’s new #AllTimeHigh. Watch this inverse correlation between price & exchange whales closely!”
With exchange reserves declining and stablecoin inflows rising, technically, ETH is in a strong position to see a continuation of its rally.
It remains to be seen whether it can see a short-term reversal from its recent dip, but based on its price cycle throughout February, a recovery is more likely than a breakdown from the current range.