Ether, the native token of Ethereum, was not spared the repercussions of today’s crypto carnage. However, insiders are touting it as a hedge of value against Bitcoin. It hit a three-year high against the flagship crypto and the biggest coin by market cap, CoinTelegraph reported.
Ether-Bitcoin exchange rate at almost 12%
The ETH/BTC exchange rate went up to around 11.5% today, reaching 0.0835 BTC for the first time since the spring of 2018. Today, ether lost 15% against the U.S. dollar in the wake of a market-wide selloff, which saw the king of crypto losing as much as 21%. It was a carnage across the top 100 cryptos by market cap. Only stablecoins stayed safe.
Ether’s losses much smaller than Bitcoin’s
Although Ethereum also suffered substantial losses, they were much more moderate compared to Bitcoin in US dollar terms considering the three-year high of the ETH/BTC pair. Insiders say investors are starting to treat the second-biggest crypto as a hedge of value against Bitcoin during today’s crash.
According to Bitpanda’s Lukas Enzersdorfer-Konrad, chief product officer at the exchange, the pair’s November close was the best one in almost four years, showing that bulls still had “some power left for an additional run.” He added:
Ethereum is outperforming Bitcoin by a large margin this year […] It increased its market dominance to 22%. The number of active addresses on the network continues to climb while the net issuance of ETH continues to fall which might be the main reason for its rapid rise.
Independent, pseudonymous market analyst Crypto Birb tweeted today that investors seemed to be taking ETH as a hedge. According to an ETH/BTC price chart, the pair retraced sharply after testing the 200-period moving average as support.
Ether shows potential to continue rising
The native token of Ethereum has shown potential of continuing its upward trend. This is due to what’s known as an Ascending Triangle. Today, the pair broke out of this technical support pattern’s range to the upside in parallel to a small trading volume increase.
Profit target is near 0.1 BTC
Ideally, BTC/ETH’s move upside should stretch until it reaches levels, whose length equals the maximum distance between the lower and upper trendlines of the triangle when measured from the breakout point.
The profit target is near 0.1 BTC based on the Triangle’s upside target from the breakout point near 0.077 BTC.
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