How Can ETH’s Bullish Structure Help Bitcoin From Downtrends?

ETH’s bullish structure could prevent Bitcoin from going to another downtrend as the BTC price continues to show bearish signals. The ETH price rallied 114 percent since March 13 and the altcoin is likely to rally higher. The increased activity on the ETH blockchain and the 2.0 launch, seems to be boosting the price but the factors can also bring benefits to Bitcoin’s price action as we are reading further in the Ethereum news.

Unlike ETH, Bitcoin’s price has a bearish structure that forms a new high. This means that the BTC daily candle closed at a lower point from where it earlier was at the start of the month. The lower highs at a high time frame on the charts can leave the asset open to corrections. ETH is showing a price action different from Bitcoin and the top altcoin even saw a higher high as the most recent rally candle closed higher than in early February.

The BTC price increased by about 4 percent over the past 24 hours despite the low high pattern that was having a hard time boosting the selling pressure for the number one cryptocurrency. According to the trader Chase NL, the general sentiment around the market is that ETH’s bullish structure positively affects the price movement of Bitcoin.

Two scenarios can play out because of the contrasting price trend of ETH and BTC. Chase NL said that the price movement could bring ETH down to test lower support or a stronger momentum of Ether could prevent Bitcoin from seeing a sharper pullback as the trader noted:

 “Can ETH rally hard enough to bring BTC back above the yearly open? Or will BTC’s sluggishness and inability to close above the yearly open bring ETH back downwards? This will set my ‘bias’ for the coming days/week most likely.”

Crypto analyst Scott Melker also stated that he remains bullish on Ethereum rather than Bitcoin because ETH has a more positive price structure. ETH’s strong positioning could be because of the extended rally from February when the entire crypto market crashed on March 12. ETH crashed harder than most assets while BTC saw a 50% percent decline and ETH plunged by more than 70%.