Ethereum’s network has been experiencing a surge in growth, reaching levels not seen in months, despite a steady stream of fear, uncertainty, and doubt (FUD) surrounding the world’s second-largest cryptocurrency.
On September 10, Benjamin Cowen, founder and CEO of ITC Crypto, pointed out a wedge chart pattern in the ETH/BTC trading pair that bears a striking resemblance to one seen in 2019. The current pattern is significantly larger in scale, but the similarities suggest a potential bottoming out, especially with a Federal Reserve rate cut expected next week.
The wedge that #ETH formed this cycle had higher lows that are ~10x of the 2019 wedge.
In 2019, #ETH fell back into its wedge right before the 1st rate cut, just like 2024.
After the first rate cut in 2019, ETH fell below its wedge, and then #ETH / #BTC finally bottomed. pic.twitter.com/lAcJi8TBHX
— Benjamin Cowen (@intocryptoverse) September 10, 2024
Similarly, Michaël van de Poppe, founder of MN Consultancy, noticed a bullish divergence on the ETH chart, with a recent higher low indicating that the downward trend may be nearing its end. He suggested that this could potentially lead to a market-wide rally.
I’m getting excited about the $ETH chart.
The bullish divergence is still valid and a higher low has been made.
The downtrend of the past months is likely going to be broken upwards.
That could be a significant push for the entire market. pic.twitter.com/M3hDhxD56Z
— Michaël van de Poppe (@CryptoMichNL) September 9, 2024
As of now, Ethereum’s price is up by 2.6% on the day, trading at $2,333. The asset dipped to just below $2,200 on September 7, slightly above its previous low on August 5, indicating that it has bounced off strong support levels twice.
However, Ethereum has been struggling to keep pace with Bitcoin, having dropped 46% from its 2024 high in mid-March. Whether the upcoming Fed rate cut will shift the momentum in favor of Ethereum remains to be seen.
