Ethereum (ETH) has been indicating that it’s on the cusp of a BTC recovery for the last several days. Technical indicators suggest a change in momentum. The ETH/BTC pair has shown some strength, picking up a strong 10.42% from recent all-time lows. The duo reached a high of 0.019 BTC on April 24. Since both started to recover from their dips, this spike indicates a path of renewed interest in Ethereum over Bitcoin.

Bullish Divergence Emerges

As seen on the daily ETH/BTC chart, a bullish divergence has recently developed. This very bullish technical pattern is a harbinger of another major breakout. When the last bullish divergence of this kind formed back in Nov 2021, ETH/BTC saw a massive 24% bounce. This historical precedent joins a growing list of factors that give additional weight to the current bullish signal.

The pair is currently testing its 200-period exponential moving average (EMA) at 0.01935. A clear close above this level would be a solid confirmation and build the bullish momentum even more and draw in additional buying interest.

Key Resistance Levels in Sight

The 50-day EMA for ETH/BTC is currently located around 0.021 BTC. If this momentum can be sustained, a retest of this level by May could provide a 15% upside potential. Hitting 0.021 BTC would be a 7% increase from today’s price levels.

This 2-hour chart illustrates the breakout from a descending triangle pattern. This indicates a possible short-lived rally aimed at 0.02051 BTC. Throughout the week leading up to the drop-off, ETH/BTC broke down below the triangle’s support on the 2-hour chart. It has otherwise bounced back spectacularly in recent times. The daily price chart ETH/BTC as it stands shows tentative in favour of the pair for now.

Cautious Optimism

Technical indicators point to ETH/BTC having positive bullish momentum. Rally ahead, analysts caution, these signals do not ensure immediate full trend reversal or even a total turnaround in the pair’s eight-year bear market. Additional technicals indicate that ETH/BTC has targets up to $3,000 after breaking an important trend line. Speculative investors and traders would do well to keep a conservative perspective and focus on the larger market picture before committing substantial capital.