The price of Ethereum increased by 50 % in one month against Bitcoin

Ether (ETH), Ethereum's native token, continues its uptrend against Bitcoin (BTC) because the euphoria surrounding the upcoming network upgrade, "the Merge”, grows.

ETH at multi-month highs against BTC

On the daily chart, ETH/BTC climbed to an intraday high of 0.075 after a 1.5% gain. Meanwhile, the pair's gains came as part of a broader rebound trend that started a month ago at 0.049, representing around a 50% gain.

A partial recovery in ETH/BTC has occurred due to the Merge update, which will lead to the transition of Ethereum from proof-of-work (PoW) to proof-of-stake (PoS) mining.

Ethereum's 'rising wedge' suggests a sell-off

Technically, Ether is seeing potential temporary losses while ETH/BTC is forming a convincing rising wedge.

Rising wedges are reversal patterns that occur when price trends higher within a range defined by two rising, converging trend lines. Traders find this formation useful for spotting a trend reversal.

Moreover, falling volume and relative strength index (RSI) against rising ETH/BTC further increases the risks of a bearish divergence. This gives weight to a bearish wedge setup for the 0.064BTC target, or a decline of 11 % from today's price.

Ether looks stronger than dollar

Meanwhile, technicals paint a brighter picture for Ethereum against the US dollar. The 10% breakout potential for ETH/USD looks strong in August due to a classic bullish reversal.

On the 4-hour chart, the ETH/USD pair has formed what appears to be a “double day”. This pattern resembles the letter "W" due to two consecutive lows followed by a change in direction from a downtrend to an uptrend as shown below.

Meanwhile, the double bottom pattern is resolved after the price breaks above its common resistance level and – as a technical analysis rule – rises by as much as the distance between the first day and the resistance. 

As a result, ETH could rally towards $1,940 in August, up 10 % from today's price.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.