Ethereum price has possibly reached a temporary Top according to the Ethereum to Bitcoin Ratio. During the last weeks, we wrote a few articles about how we were watching the Ethereum to Bitcoin chart:
We shared with our readers that overall, the chart was pointing out to how this Ethereum to Bitcoin Ratio Shows that Ethereum Performance Could Strengthen in 2018. Later on, we arote about how investors should Keep an Eye on the Ethereum to Bitcoin Ratio because it might signal a Temporary Top in Ethereum price:
These are some observations from the previous articles:
Ethereum price to Bitcoin ratio is attempting to breakout of an important resistance area…And this is why investors need to keep an eye in the next days on this ratio: It is approaching an important level at 0.10. If the ratio is rejected at that level, it could imply that we are close to a temporary Top in Ethereum price (Similar to July 2017). If not, we might be in for spectacular new highs in Ethereum price.
The Updated chart showing Ethereum to Bitcoin ratio above shows that the ratio at press time is being rejected from the 0.10 area. It will be very important to see what happens at this point: A small retrace in the ratio followed by a break above that 0.10 level could mean that Ethereum’s price run is not going to retrace yet. If the ratio keeps falling, we might see a temporary Top in Ethereum Price. We favor the latter scenario.
Our article here provides a short term outlook on what the support levels would be should Ethereum price retrace. If the price retraces, we see this as a very healthy pullback for the uptrend to continue on solid bases and investors to score some entries (scaling always advisable).
Ed. note: Our sister site InvestingHaven is now the first in the world to offer a Blockchain Investing Research service, subscribe now to get the top 3 to 5 tokens per year and our proprietary risk/reward score for all blockchain stocks trading on public exchanges.