ETH/BTC Weekly Chart Analysis

The ETH/BTC pair showcases a repeated pattern of breaking key support levels, followed by a price dump, and then a recovery rally that often targets the breakout level. Historical observations suggest the following behavior:

Key Chart Pattern:

Each major breakdown from horizontal support (marked with dashed lines) is followed by significant downward momentum.
After finding a bottom, the price tends to consolidate and stage a recovery rally, often revisiting the previous breakout point.
Bullish Divergence:

The RSI indicator at the bottom highlights bullish divergences (price forming lower lows, while RSI forms higher lows).
These divergences have historically signaled trend reversals and the start of a recovery rally.
Current Outlook:

ETH/BTC has once again broken support, with a bullish divergence forming on the RSI.
If history repeats, a potential recovery rally could see the price returning to the breakout level (~0.04), with a longer-term trajectory towards higher levels.
Key Levels:

Support: ~0.0315
Resistance: ~0.04, 0.06
RSI Levels: Watch for sustained movement above 37.5 for bullish momentum.
Conclusion:
This pattern could be a lucrative opportunity for swing traders, especially if the bullish divergence plays out as expected. Watch for a confirmed trend reversal before entering long positions.