• The ether-bitcoin (ETH/BTC) ratio could rally toward a two-month high, according to Lewis Harland, a portfolio manager at Decentral Park Capital.
• The ratio has broken out of a multi-month triangle pattern, often called a wedge, indicating a bull victory in the prolonged tug-of-war with bears.
• This breakout suggests the path of least resistance for ETH/BTC is on the higher side, potentially leading to a rally toward the early December high of 0.07636 and early November highs of nearly 0.078.

The ether-bitcoin (ETH/BTC) ratio is on the rise after a long period of volatility. According to Lewis Harland, a portfolio manager at Decentral Park Capital, the ratio could rally toward a two-month high. This increase is due to a triangle pattern breakout, often referred to as a wedge, indicating a victory of the bulls over the bears in the prolonged tug-of-war.

The wedge pattern was formed when both the bulls and the bears were unable to lead the price action, leading to volatility compression. This resulted in the triangle pattern, which was created by connecting the highs registered in September, October and December and the lows hit in October, November and December. After the eventual breakout, a bullish movement was seen, resulting in the surge of the ETH/BTC ratio. This breakout suggests the path of least resistance for ETH/BTC is on the higher side, potentially leading to a rally toward the early December high of 0.07636 and early November highs of nearly 0.078.

Should this breakout prove to be successful, it could mean a bears in disbelief rally for ether in the coming weeks. This bullish outlook is supported by several key indicators, such as the increasing trading volumes and rising open interest on the Ethereum futures markets. Similarly, the ETH/BTC ratio could also be influenced by the fundamental developments around the Ethereum network, such as the transition to Ethereum 2.0.

The Ethereum 2.0 upgrade is expected to bring a new era of scalability, high performance and security to the Ethereum network. The upgrade is aimed at solving the scalability issues that have held back the growth of the Ethereum blockchain. This would lead to faster and more cost-efficient transactions on the blockchain, as well as improved security.

It remains to be seen whether the ETH/BTC ratio will reach the early December high of 0.07636 and early November highs of nearly 0.078, as suggested by Lewis Harland. However, it is clear that the breakout of the triangle pattern has opened the doors for a bullish rally in the ether-bitcoin ratio. As such, investors should keep an eye on the developments around the Ethereum network and the ETH/BTC ratio, as any positive news could result in a surge in the ratio.