• Ethereum’s native token, Ether (ETH) has the potential to grow by 35% versus Bitcoin (BTC) this year.
• This potential growth is suggested by a classic bullish continuation pattern known as an ascending triangle.
• If Ethereum breaks out above the triangle’s horizontal trendline resistance near 0.0776 BTC, the ETH/BTC pair could reach the next big resistance level at 0.1 BTC in 2023.
Ethereum native token, Ether (ETH) has been on a remarkable journey over the past few years. Since its launch in 2015, the cryptocurrency has established itself as one of the most popular and successful digital assets out there. More recently, the launch of its staking contract in December 2020 has seen its market dominance double, and now ETH price is eyeing levels not seen in five years versus Bitcoin (BTC).
The ETH/BTC pair has been painting an ascending triangle pattern since May 2021 on the weekly chart. This classic bullish continuation pattern is characterized by the price fluctuating inside a range defined by rising trendline support and horizontal trendline resistance. It typically resolves after the price breaks out in the direction of its previous trend. In this instance, breaking out above the triangle’s horizontal trendline resistance near 0.0776 BTC could see the Ethereum token rally by as much as the triangle’s maximum height. This would lead the ETH/BTC pair to reach 0.1 BTC, or 35% from the current price levels, for the first time since 2018.
However, it is important to note that ETH/BTC has attempted to break above the triangle’s resistance trendline eight times since May 2021. The attempts included two major breakouts in November 2021 and September 2022, which saw the pair rallying 14% and 9% respectively. Both rallies eventually fizzled out inside the 0.082 to 0.085 BTC area, failing to hold above the resistance trendline.
The current strength of the ETH/BTC pair is a testament to the success of the Ethereum network. As more users flock to the platform and its staking contract, ETH’s value is expected to continue to increase. If the pair does break out above the triangle’s resistance trendline, it could potentially reach a new all-time high versus Bitcoin in 2023.