Although institutional interest has undeniably been focused on Bitcoin, Ethereum’s lower cost of entry and unstoppable momentum have recently allowed the altcoin to outperform the top crypto asset by market cap.
A nearly flawless technical pattern that has not yet erupted and coincides with a tool for measuring trend strength that is approaching critical levels suggests that Ethereum’s dominance over BTC will not only continue for the time being, but the intensity will soon be substantial will increase.
Ethereum breaks all-time high and restores the hype in altcoins
Ethereum finally topped its previous all-time high of $ 1,400 this week in January 2018. Bitcoin’s dwindling momentum has since turned the flow of capital towards the second tier cryptocurrency and top altcoin.
Related reading | Ethereum’s open interest is reaching an all-time high alongside the record-breaking rally
Dmytro Volkov, CTO of CEX.IO, says that the trading volume of Ethereum on the platform tripled over the same period, although the trading volume of Bitcoin recently “doubled” due to renewed “hype”. Specifically, the ETHUSD trading pair rose five times the average trading volume and accounted for up to “20%” of the platform’s total volume.
Top industry analysts expect Ethereum price to follow trading volume and double after breaking the record, as bitcoin liked it very much. However, this isn’t the only pattern the altcoin could repeat anytime soon.
Ethereum could soon repeat Bitcoin's outbreak Source: ETHBTC on TradingView.com
ETHBTC is forming near-flawless engineering pattern on the verge of a mighty breakout
The diagram above shows the symmetrical triangle pattern that has been formed between the altcoin and the topmost cryptocurrency in recent years.
After the first year of price movement, the trend has favored Bitcoin the most. But this will change. Much like Bitcoin’s huge breakout against the dollar when it broke the triangle’s top trend line, Ethereum is poised to do the same against BTC.
And given the momentum that Bitcoin has on its own, the rally in Ethereum is poised to be in the history books.
Momentum is building up pressure below resistance for a strong breakout | Source: ETHBTC on TradingView.com
According to the Average Directional Index and the Directional Movement Index, a breakout is imminent, underpinned by mounting buying pressure and an almost non-existent presence of sellers. These tools together show when buyers or sellers are in control and how strong the trend is.
Currently, the red line in the DMI has sunk far below the green line. The bullish crossover suggests more upside potential as the ADX itself grows above 20, suggesting the trend is just beginning.
Related reading | Capital manager: Ethereum will double in two weeks once ATH is broken
A collapsing inverse head and shoulder formation as well as a rounded bottom formation have created a base from which Ethereum will start against Bitcoin.
Unless there is a sudden and sharp reversal down the line, the top altcoin Bitcoin will be running a run for its dominance in the crypto market in the coming months.
Featured image from Deposit Photos, Charts from TradingView.com