ETH/BTC Faces Key Decision as Supertrend Signals Major Price Shift

• ETH/BTC is at a critical level where it may drop further or start rising again.
• Traders are closely watching the next monthly candle to confirm the trend.
• A drop below 0.027 BTC could trigger more selling while 0.02 BTC is key support.

Ethereum’s performance against Bitcoin (ETH/BTC) is painting a fascinating yet cautious picture, as highlighted by the latest Supertrend indicator on the 2-month timeframe. According to CoinChartist, a well-known crypto analyst on TradingView, the ETH/BTC pair is hovering at 0.02722 BTC, reflecting a subtle +0.18% gain. However, the broader outlook suggests that Ethereum might be struggling to reclaim dominance against Bitcoin, with the Supertrend flashing a downtrend signal while key support levels battle to hold.

Supertrend Indicates Bearish Pressure, Historical Patterns Resurface

The Supertrend indicator, a widely used trend-following tool, last issued a sell signal in 2018, leading to a prolonged bearish phase that saw ETH/BTC drop significantly. A bullish buy signal appeared in early 2021, initiating a period of strength for Ethereum relative to Bitcoin. Currently, ETH/BTC finds itself once again at a Supertrend decision point, with a confirmed downtrend resistance at 0.07 BTC, marking a strong rejection zone for bulls.

At the moment, the Supertrend support sits at 0.02 BTC, a level that has historically acted as a springboard for major reversals. The last bullish flip occurred near this level, making it a crucial area to watch. If ETH/BTC closes below 0.02722 BTC, traders might anticipate further downside, potentially testing 0.02 BTC in the coming months.

Technical Outlook: Strong Support at 2M, But a Bearish Flip Looms

Traders like Dr. CatX, a technical analyst who commented on the chart, point out that ETH/BTC is testing a strong support level at 0.027 BTC on the 2-month timeframe, aligning with previous price action (PA) and critical consolidation structures (CS). However, the concern is whether the monthly close confirms a bearish flip, which could push ETH/BTC lower. A breakdown would bring 0.0296 BTC into focus as a pivotal close-out level, making the upcoming months crucial for Ethereum’s relative strength.

Meanwhile, community reactions highlight mixed opinions. Some traders suggest that Supertrend indicators are more reliable on mid-cap assets, while others believe ETH/BTC could be on the verge of a trend reversal if support holds.

Market Sentiment: Cautiously Watching the Monthly Close

With ETH/BTC at 0.02722 BTC, market participants are keenly watching whether the monthly candle confirms a sell-side continuation or if bulls step in to defend key support. The Supertrend resistance at 0.07 BTC remains a distant but critical upside target, while the Supertrend support at 0.02 BTC serves as the last line of defense. A break below 0.027 BTC could signal a deeper correction, potentially bringing ETH’s dominance under further pressure.

The next few months will be pivotal, with ETH/BTC walking a fine line between a trend reversal and a deeper downtrend continuation. Will Ethereum hold its ground, or is Bitcoin set to further assert its dominance? Traders are bracing for what could be a decisive moment for the ETH/BTC pair.