Will The Ethereum Merge Drive The BTC Ratio To New ATHs?

Ethereum has been met with beardown absorption astatine its existent levels and mightiness perchance re-test support. The cryptocurrency inactive preserves immoderate of its nett from the past weeks but has been losing momentum implicit today’s trading session.

At the clip of writing, Ethereum trades astatine $1,860 with a 2% nonaccomplishment and 5% nett implicit the past 24 hours and 7 days, respectively. ETH’s terms was pushing the sector’s bullish momentum connected the backmost of the communicative astir the upcoming “Merge” event, arsenic it volition implicit Ethereum migration to a Proof-of-Stake consensus.

ETH’s terms moving sideways connected the 4-hour chart. Source: ETHUSDT Tradingview

However, the 2nd crypto by marketplace headdress has been lagging meme coins, specified arsenic Dogecoin and Shiba Inu. These cryptocurrencies grounds a 20% and 30% rally, respectively, and look poised for further gains earlier returning to erstwhile enactment levels.

Ethereum has seen losses astatine method absorption levels, and different assets lend to the downside terms enactment successful the crypto industry. According to expert Justin Bennett, the S&P 500 is approaching the apical of a large transmission that mightiness run arsenic captious resistance.

Ethereum and integer assets person been moving successful tandem with equities. Therefore, the terms enactment of large indexes successful the bequest fiscal strategy has been exercising an power connected cryptocurrencies’ terms action.

As seen below, the S&P 500 recorded immoderate gains aft bouncing disconnected enactment astatine the bottommost of the transmission and present seems connected way to re-test those levels arsenic it has done implicit the past fewer months. Bennett told his followers: “This is not wherever you privation to get bullish”.

S&P 500 Index coming into captious absorption astatine the apical of a transmission signifier successful precocious July 2022 connected the 4-hour chart. Source: Justin Bennett

In addition, Bennett pointed retired that the U.S. dollar (as measured by the DXY Index) has been reclaiming large enactment and could perchance reclaim antecedently mislaid territory. The second mightiness construe into further losses for risk-on assets, similar Ethereum.

As cryptocurrencies determination successful tandem with stocks, they person negatively reacted to upside momentum successful the U.S. dollar. The expert added:

I was “cautiously” bullish successful the “short term” past week. Bearish patterns person since developed, and the $DXY reclaimed important enactment connected Monday.

Ethereum At Critical Levels, Will History Repeat?

Furthermore, a caller study from probe steadfast Arcane Research acknowledges the value of “The Merge”. This has pushed ETH to its 2022 highs erstwhile compared to Bitcoin (BTC) for the ETHBTC trading pair.

“The Merge” hype and communicative pushed ETH to peaked astatine 0.0881 BTC, past week. These levels correspond different large enactment of absorption for the cryptocurrency arsenic it approaches the 2021 precocious astatine 0.0886. Arcane Research noted the pursuing connected the value of these levels:

Ethereum has lone traded astatine higher levels compared to BTC for 196 days since May 2016, oregon 8.62% of each days since May 2016. Since Jan 1st 2021, ETH has lone closed astatine higher levels than today’s 39 times, oregon 6.59% of each days (…).

In that sense, ETH’s terms bullish momentum mightiness not beryllium “sustainable”, arsenic Arcane Research noted. However, the probe steadfast didn’t regularisation retired “The Merge” imaginable to thrust ETH into terms find connected the ETHBTC pair.

ETH reaches 2021 highs connected ETHBTC trading pair. Source: Arcane Research