ETH/BTC pair reached a low of 0.020 Bitcoins on July 16 then bounced back to 0.0224 Bitcoins the very next day. Then the price decreased and rose again on 25 and 27 July. The price of the pair has been decreasing ever since.
Across the short-term charts of hourly-time frames, we can observe that Ethereum’s price has been moving inside an ascending triangle ever since it bottomed out on July 16. This is a bullish pattern and makes a breakout above much more probable.
However, the price was trading slightly above the support line at the time of writing. Regardless, the Relative Strength Index (RSI) suggests that a price reversal is imminent.
Furthermore, a bullish divergence is developing in the RSI across the short-term charts. However, this divergence is minor and cannot be seen across the medium and long-term charts.
It would gain more significance if price falls to the support and increases the divergence again.
Across the weekly-time frame charts, we can observe that the price has been trading in a descending channel with current support at 0.020 Bitcoins.
This is a strong support line as the price has not traded below since March 2017. Moreover, this has made a reversal much more likely. This can be the support to initiate the reversal.
Furthermore, the RSI and the moving average convergence/divergence (MACD) indicate a bullish move in the near future.
We can observe that the RSI has been establishing bullish divergence since July last year while the MACD has done the same since December 2018. On another note, it is very rare to see a divergence forming across the weekly time-frames.