Analysts say Ethereum (ETH) has printed a classic bullish reversal pattern against Bitcoin in the weeks leading up to the Merge. According to analysts, Cardano (ADA) is ready to run to the $0.55 level in the current uptrend.
Pattern shows breakout imminent for Ethereum
Analysts have observed the formation of a cup and handle formation on the ETH-BTC price chart prior to the transition to the Proof-of-Stake consensus mechanism. However, Ethereum (ETH) has bullish potential. Ethereum price hit a local bottom on June 13, 2022. Later on, it recouped its losses and recorded a 40% increase. Meanwhile, the ETH/BTC pair has reached a two-month high. Analysts have observed a classic bullish pattern on the chart that predicts a long rally.
Crypto analyst Yashu Gola has noted a trophy formation on the lower timeframe chart of ETH/BTC since last week. A cup and handle pattern occurs when the price of an asset falls and recovers in a U-shaped rebound, similar to a cup. When the asset’s price trends fall within a descending channel, it is called a handle. When the ETH/BTC parity compensates for its losses and reaches the same level as before the drop, the pattern unravels.
Tom Bulkowski, an experienced investor, argues that the cup and handle model has a 61% success rate in meeting the profit target. Interestingly, this formation was accompanied by a drop in ETH reserves among exchanges, another indicator of a rally in the altcoin.
Ethereum foreign exchange reserves hit their lowest level in four years
According to data from crypto intelligence platform Glassnode, Ethereum balance between exchanges has reached a four-year low. The total ETH held on exchanges remained below 20 million as of July 22. Ethereum balances between exchanges last reached this level in July 2018 and were 19.93 million. Investors are likely to withdraw ETH from exchanges in anticipation of Merge. Because Merge is a key event in Ethereum’s journey to lower transaction costs and higher scalability.
Ethereum forecast by analysts
Meanwhile, analysts foresee a retest of the $2,000 level in the Ethereum price trend. Because the ETH/BTC price chart has revealed a bullish pattern. This is why analysts believe a breakout in the altcoin is likely.
Cardano performed successful tests in front of Vasil Hard Fork
As you follow on Kriptokoin.com, Input Output Global (IOG) has released weekly updates on the Cardano development, with details of the tests performed on the Vasil testnet and devnet. Node, ledger and consensus teams are working on the upcoming version of v.1.35.2 node. The release will bring improvements and bug fixes found in previous node versions during Vasil testing.
The Plutus team worked to improve ledger interoperability around new cost models. The team focused on testing and documentation improvements. All tests on Vasil testnet and devnet have been successful and are on their way to the hard fork.
Cardano reaches a new milestone
At a turning point for the Cardano community. The blockchain ran smoothly for a total of 1760 days without interruption. One of the most actively developed blockchains in the entire industry, with one of the altcoin’s highest GitHub commits of 350 in June 2022.
The high rate of development in Cardano Blockchain is due to the popularity and social dominance of the altcoin network. The altcoin gives developers in the Ethereum ecosystem a low-cost and efficient alternative with fast transaction processing. This makes it a profitable choice for NFT and dApp developers in the crypto ecosystem.
Analysts, Cardano forecast
Analysts predict a rally to $0.55 in Cardano’s current uptrend. According to analysts, Cardano has bullish potential. Hence, the altcoin is ready to erase its losses from the last few weeks.
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