You can literally hear it simmering at the Ethereum course. Something is boiling under the surface and as I will show in this article, there is convincing evidence that the price per ETH compared to the Bitcoin price could break out very soon.
The past few days have undoubtedly been positive for investors in the cryptocurrency space
Above all, the Bitcoin price is one of the better performers among the top cryptocurrencies with an increase of 15.4%. In comparison, the Ethereum price has lagged behind Bitcoin with a price increase of 7.4% in the last 7 days . Certainly 7.4% is anything but bad within a week, but it is barely half of what Bitcoin has achieved. But the lag for Ethereum could come to an end very soon.
A chart was recently posted on the Telegram channel of Bitcoin-Bude.de , which indicates that the Ethereum rate could soon be ahead of the Bitcoin rate.
The ETH / BTC chart shows what is commonly known as the falling wedge pattern. What exactly this formation says about the Ethereum course and its possible performance in the next few days, let’s take a closer look.
Ethereum price against Bitcoin in the falling wedge formation
A falling wedge formation is rare, but easy to spot. It has few and at the same time very clear characteristics. Above all, this includes two downward sloping trend lines. Both of these trend lines must intersect at the top of the formation. This means that although both trend lines are sloping downwards, the falling angle of the upper line is steeper. As we can see, the Ethereum course fulfills this first feature.
There should be a total of at least 5 touches on the trend lines so that an actual wedge formation can be assumed here. Otherwise there is reason to be skeptical. As we can see, however, the Ethereum course compared to Bitcoin also fulfills this feature with flying colors.
Another feature is that this formation lasts for at least 3 weeks. As a rule, the wedge formation moves within a time window of 3 weeks to 4 months. The Ethereum price has been moving in its formation for almost 3 months. In addition, it has reached the top of the formation, which suggests an early breakout (if the pattern picks up).
Finally, the volume trend gives us the final characteristic of the wedge formation, even if it is not a must. The volume usually decreases steadily until the eruption within the formation. This feature is also fulfilled by the Ethereum course against Bitcoin.