Etherum's local token Ether (ETH) is likely to increase by 35% against BTC this year, achieving 0.1BTC for the first time since 2018, because it forms a classic way of continuing to rise.

The etheric price must first break through the important resistance

This model is called a rising triangle and is formed when prices rise and fall within the range defined by the moving average resistance of the rising trend line. It is usually dealt with after the price breaks through the previous trend.

On the weekly chart, the ETH/BTC pair has been making a rise since May 2021. The Ethernet token will break through the horizontal moving average resistance level located near 0.0776. Breaking through this level may see prices rise by as much as the maximum height of the triangle.

In other words, ETH/BTC may reach the next big resistance level 0.1BTC in 2023, or 35% of the total demand for spacing at this stage.

Even so, it is worth mentioning that since May 2021, ETH/BTC has made eight attempts to break through the triangle's resistance moving average. This attempt includes a number of important breakthroughs in November 2021 and September 2022, up 14% and 9%, respectively.

Both reversals were unsuccessful in the 0.082 to 0.085BTC area, followed by extreme price adjustments that brought ETH/BTC back into the triangle range again. Taking into account this multi-year hurdle, the foreign exchange currency is likely to encounter strong resistance in the range of 0.082 to 0.085, even if it breaks through the triangle.

Such a move could cause ETH to fall towards the triangular support line, which is exactly the same as the 50-week index moving average (50-week daily average). The bottom line in the chart above represents a level close to 0.070 BTC, down nearly 6% from total demand at this stage.

"deflation" narration

In recent years, ETH has doubled its dominance compared to other cryptographic assets, and so does the rise of ethernet versus bitcoin.

It is worth noting that the proportion of ETH's total market capitalization to the valuation of the entire login password market has risen from about 10 per cent in December 2020 to nearly 20.5 per cent in January 2023, when the ethernet launched a dedicated chip blockchain intelligent contract, gradually converging from work unit certification (PoW) to equity certification (POS).

The transformation into POS blockchain technology has added two key points to the development of the etheric economy. First, customers temporarily lock some of their Ether assets into Etherum's pos blockchain smart contract to make a profit. Second, the Ethernet Internet is now beginning to deduct some transaction fees.

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Both of these shifts are right. Overall supply has created a deflationary hazard. As a result, the Ethernet Internet is now generating fewer Ethernet tokens on time than withdrawing from circulation, which in theory makes the Ethernet Internet a kind of "deflationary" property.

ETH/BTC prices have risen nearly 250 per cent since December 2020, although they are still down about 50 per cent from the 2017 record.