Although all eyes have been on Bitcoin as of late, it may be time to pay some heed to altcoins like Ethereum and XRP. According to a recent analysis of the ETH/BTC chart, Ether may soon rally by over 100% against the leading cryptocurrency Bitcoin, with technical and fundamental factors supporting a rally in this trading pair.
Related Reading: XRP Could Soon Fall Against Bitcoin, Analyst Warns as Pressure Builds
Ethereum/Bitcoin Could Surge 100%, Analyst Says
According to a trader, the chart of ETH/BTC is setting up for an upward breakout in the coming months, drawing attention to two key technical factors: a colossal falling wedge that has been in place for over a year now, coupled with a 15-month-long bullish divergence between the price action and the Moving Average Convergence Divergence (MACD).
This, he claimed, will support an Ethereum against Bitcoin rally of over 100% by the end of 2021.
ETHBTC. Failed to break diagonal resistance.
Short term not looking good unless we manage to break diagonal painting that iHS on the weekly RSI.
Long term i'm a mega bull.
– Massive FW
– 15 months bullish div on the MACD— Wolf 🐺 (@IamCryptoWolf)
Related Reading: XRP is Down 95% from Its 2018 Peak; What’s Next for the Embattled Crypto?
Ball Still in Bitcoin’s Court?
While there are analysts bullish on the prospects of Ethereum against Bitcoin, there remain headwinds for the asset in general:
The first is that altcoins like Ethereum have largely underperformed Bitcoin over the past 20 months, with BTC dominance — the percentage of the cryptocurrency market made up by BTC — surging to a high of 72% this year from 33% early in 2018. This refocusing on the market leader has been caused by institutional involvement and a consensus that a majority of altcoins have no future prospects.
That’s not to mention that commentators expect for Bitcoin’s swelling hash rate to be the death of altcoins.
Related Reading: What’s Next for the Bitcoin Blockchain? Top Developer Weighs In
Ethereum’s Strong Fundamental Trend
Sure, there may be technical factors to support a depressed Ethereum, yet they ignore the fundamental trend of the blockchain and its respective cryptocurrency, which some would argue has been more than positive over recent months.
Fidelity Investments’ cryptocurrency branch, , was recently reported by industry outlet The Block to have shown intentions to launch support for Ethereum in 2020. Should Fidelity live up to its promises, institutional traders across the world may soon have access to Wall Street-grade custody and trade execution services for Ethereum, potentially acting as a catalyst for greater levels of institutional investment.
On the coding side, early iterations of Serenity, the overarching term given to Ethereum’s next phase of development that will see the blockchain become one based on staking, are expected to be launched early next year.
While it is unlikely that the rollout will be smooth, developers and commentators in the cryptocurrency space believe that once Serenity is fully activated, Ethereum will cast aside any scaling concerns, allowing for a new wave of adoption to grace the blockchain, potentially acting as a monumental positive demand shift in the market of ETH.
Related Reading: CME Futures Data: Institutions Still Wary Despite Bitcoin’s Bullish Signs
Featured Image from Shutterstock