The correlation between ETH/BTC and the CNH/US dollar trading pair is being noted by crypto analyst Michael van de Poppe as a highly positive indicator of altcoin bull and bear markets.
Van de Poppe reports that CNH/USD and ETH/BTC both bottomed in April, following a similar pattern to the period seen in 2019. As the two couples are in the correction stage, he says that the market could be on the altcoin buy-the-dip stage.
ETH/BTC Technical Landscape
Currently, ETH/BTC is at a low price of 0.036, which is still within its support level of 0.35. Traders can observe the resistance at 0.040, which establishes a critical range.
The daily Relative Strength Index (RSI) is 41, indicating weak momentum but also that the pair is approaching oversold. This is perceived to be a potential accumulation zone when the support area breaks.
Historical Parallels Draw Attention
Van de Poppe also compared the market structure that exists today to that of 2019, when both ETH/BTC and CNH/USD bottomed out and began a major uptrend. He suspects that the similarity may provide an avenue of insight regarding what lies ahead of altcoins in the next few months.
The correlation, as he puts it, has been giving an early indicator of bullish and bearish cycles in the altcoin market. Traders are now closely observing whether the same thing will happen again.
Buy-the-Dip Sentiment Builds
Many people are considering the ongoing correction in ETH/BTC as an entry point. With support at 0.035, the Ethereum and Bitcoin pair may either revert to resistance levels or allow altcoins to gain strength again.
Although short-term volatility is likely, analysts note that the longer-term trend indicates a chance of accumulation. The current phase could be a potential buy-the-dip phase in the portfolios of patient investors because the macro (CNH/USD) and crypto signals (ETH/BTC) coincide, as Van de Poppe pointed out.
