Ethereum faces 6-month lows versus Bitcoin — Will ETH price rebound?

Ethereum's autochthonal token, Ether (ETH), continues its multi-month downtrend against Bitcoin (BTC) successful March, rising 5.5% versus the latter's 19.5% gains connected a month-to-date (MTD) timeframe.

Bitcoin overshadows Ethereum amid banking crisis

As of March 23, the ETH/BTC brace was down astir 9% month-to-date (MTD) to 0.0633 portion staying connected people to grounds its worst period since September 2022 erstwhile it fell 11.75%.

ETH/BTC monthly terms chart. Source: TradingView

From a cardinal perspective, traders preferred Bitcoin implicit Ether, hoping it would support them from the ongoing banking turmoil successful the U.S. and different parts of the world. The communicative gained momentum successful caller weeks arsenic Wall Street investors similar Cathie Wood spot Bitcoin arsenic a imaginable "flight to safety" asset.

‼️CATHIE WOOD: #Bitcoin's effect to the banking situation is the astir melodramatic illustration that innovation solves problems. #Bitcoin was a formation to safety. pic.twitter.com/1lTD2Drto3

— Bitcoin Archive (@BTC_Archive) March 21, 2023

As a effect of the increasing speculation, Bitcoin outperformed accepted assets aft March 8, erstwhile signs of occupation appeared astatine Silicon Valley Bank. In doing so, BTC besides fared amended than the altcoin marketplace combined, including Ethereum.

Bitcoin, S&P 500, Gold, and Altcoin marketplace performances successful March. Source: TradingView 

ETH paints bullish fractal vs. BTC

But from a method perspective, Ethereum is positioned for a comeback versus Bitcoin.

At slightest 2 method indicators airs the anticipation that ETH/BTC volition rebound sharply successful the coming weeks.

Related: Ethereum terms astatine $1.4K was a bargain, and a rally toward $2K looks similar the adjacent step

First, the pair's three-day comparative spot scale (RSI) has dropped beneath 30, which method analysts see an "oversold" area.

Second, Ether's driblet versus Bitcoin has landed its terms adjacent its ascending enactment level (buy portion successful the illustration below).

ETH/BTC three-day terms chart. Source: TradingView

A akin script successful the June-July 2022 league preceded an astir 60% rally toward ETH/BTC's descending trendline absorption (sell portion successful the illustration above). If the fractal plays out, the brace could rally toward the aforesaid absorption level by June 2023.

In different words, Ether has a decent chance  astatine rebounding by much than 15% to astir 0.075 BTC. Conversely, a interruption beneath the ascending trendline enactment volition invalidate the bullish fractal.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.