Ethereum’s native token, Ether (ETH), continues its multi-month downtrend against Bitcoin (BTC) in March, rising 5.5% versus the latter’s 19.5% gains on a month-to-date (MTD) timeframe.
Bitcoin overshadows Ethereum amid banking crisis
As of March 23, the ETH/BTC pair was down about 9% month-to-date (MTD) to 0.0633 while staying on course to record its worst month since September 2022 when it fell 11.75%.
From a fundamental perspective, traders preferred Bitcoin over Ether, hoping it would protect them from the ongoing banking turmoil in the U.S. and other parts of the world. The narrative gained momentum in recent weeks as Wall Street investors like Cathie Wood see Bitcoin as a potential “flight to safety” asset.
‼️CATHIE WOOD: #Bitcoin‘s response to the banking crisis is the most dramatic example that innovation solves problems. #Bitcoin was a flight to safety. pic.twitter.com/1lTD2Drto3
— Bitcoin Archive (@BTC_Archive) March 21, 2023
As a result of the growing speculation, Bitcoin outperformed traditional assets after March 8, when signs of trouble appeared at Silicon Valley Bank. In doing so, BTC also fared better than the altcoin market combined, including Ethereum.
ETH paints bullish fractal vs. BTC
But from a technical perspective, Ethereum is positioned for a comeback versus Bitcoin.
At least two technical indicators pose the possibility that ETH/BTC will rebound sharply in the coming weeks.
Related: Ethereum price at $1.4K was a bargain, and a rally toward $2K looks like the next step
First, the pair’s three-day relative strength index (RSI) has dropped below 30, which technical analysts consider an “oversold” area.
Second, Ether’s drop versus Bitcoin has landed its price near its ascending support level (buy zone in the chart below).
A similar scenario in the June-July 2022…
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