Ether (ETH) could rise by almost 40% against Bitcoin (BTC) in the coming trading sessions, according to one analyst. So believes Michaël van de Poppe, an Amsterdam-based market analyst who predicts that the ETH/BTC exchange rate will climb from its current 0.05–0.06 BTC range to as high as 0.07 BTC soon.
The technical chartist based his bullish analogy on the pair’s support level at 0.063 BTC. The price floor was instrumental in maintaining ETH/BTC’s bullish bias during the mid-May 2021 notorious crypto market crash. It also served as solid support during the pair’s uptrend in the early May 2020 trading session.
The bullish analogy appeared right as ETH/BTC stretched its price rebound, from its June 27 low of 0.0552 BTC, by 21.28%. It showed that more traders preferred to sell their Bitcoin holdings to seek opportunities in the Ether market in recent days. On a year-to-date timeframe, the second-largest cryptocurrency had already surged by more than 160% against Bitcoin.
The transition took cues from the euphoria surrounding Ethereum’s planned consensus layer transition from its energy-intensive proof-of-work (PoW) to a more scalable and cheaper proof-of-stake (PoS). The project launched the first phase, called Phase 0 or Beacon Chain, in December 2020. It introduced a so-called sharded network architecture to the Ethereum blockchain
The next phase that brings Ethereum closer to PoS is the Ethereum improvement Proposal 1559, also known as the London hard fork. The upgrade proposes to replace Ethereum’s “first-price auction” fee model with a base network fee, modifiable per the network’s demand. It hopes to solve the blockchain’s higher gas and transaction fee problem. It also aims to make ETH a deflationary token by burning the base network fee.