By CCN Markets: On May 21, a pseudonymous cryptocurrency technical analyst named “Rampage” posted on Twitter that ETH/BTC is about ready to catch up to ETH/USD. In a tweet, the attached an image in which the price action of two markets is overlaid in a single chart.
The analyst predicts that Ethereum will move higher against bitcoin and follow the price action of its USD counterpart:
We’re covering this particular tweet because of a compelling technical analysis on why Ethereum is bullish against bitcoin. Within the same tweet, the person behind the account created a thread to support the forecast.
For instance, on May 24, the analyst emphasized how Ethereum converted the former resistance of 0.03 into support. In our book, that’s seemingly bullish price action as it shows rejection of lower prices.
Here is an illustration of Ethereum flipping a key resistance area into support:
Longer Timeframe Ethereum Analysis
The analysis also points to an ultra bullish take on a longer time frame. Based on the tweet, the resistance into support (S/R) flip and the retest of the three-day order block (OB) looks clean on the longer timeframe. In technical analysis jargon, order block is another term for a support or demand area.
Ethereum holding a key level on the three-day chart:
With the cryptocurrency flashing bullish signals, Rampage posted a chart where the targets are specified. The first target is 0.040873 and the second target is 0.053449. Ethereum is trading at 0.030858 as of press time. If the analysis turns out to be accurate, long postitions in the market can potentially boost Ethereum holdings against bitcoin by over 70 percent.
Ethereum price targets against bitcoin:
It has been three weeks since the prediction was made, and Ethereum has yet to make its move. However, bulls have a legitimate chance in the next 24 to 48 hours to finally make their presence felt. The key level to…