ETH/BTC breaks out of downtrend, analyst expects further rise

The ratio between Ethereum and Bitcoin, expressed as ETH/BTC, has broken through a long-standing downward trendline. Analyst Quinten François sees this as confirmation of his earlier analysis and expects the move to continue. According to him, this is also a positive sign for the broader altcoin market.

Ethereum is available at OKX and Bybit.

In brief:

• ETH/BTC breaks out of a downward trendline that had been visible on the daily chart for months.
• The resistance level around 0.0324 BTC temporarily caused a pullback, but François expects a breakout.
• A rising ETH/BTC ratio is generally seen as a positive signal for altcoins.

Months-long downward trend broken

On the daily ETH/BTC chart, a downward channel had been visible for quite some time, with lower highs and lower lows. The price ratio had been moving within this structure for more than a year, with attempts to break higher failing each time.

Recently, ETH/BTC broke above the upper boundary of that channel. That is a pattern break that analysts generally consider a signal of a trend reversal. The current price ratio is around 0.03123 BTC.

Resistance at 0.0324 BTC a temporary obstacle

Quinten François points to the 0.0324 BTC level as resistance. That level has held the price back for the time being, resulting in a brief pullback. According to him, that was exactly what could be expected based on his earlier analysis.

François expects that the 0.0324 BTC level will still be broken soon, after which the rise will continue. He notes that a rising ETH/BTC ratio is a favourable sign for altcoins in general. When Ethereum outperforms Bitcoin, capital often also flows to other alternative coins.