ETH/BTC at a Turning Point: Bullish Divergence & Stoch RSI Oversold – What Comes Next?

If you’re watching the ETH/BTC pair, you’re seeing something big brewing.

On the weekly chart, two major signals are flashing:

✅ Stochastic RSI is entering deep oversold territory
✅ A bullish divergence is forming

This kind of setup doesn’t happen often—and when it does, it precedes major shifts in the market.

So what does this mean for Ethereum against Bitcoin? And how can you use this to position yourself ahead of the next trend?

Let’s break it down.

📉 Stochastic RSI Oversold – Why It Matters

The Stochastic RSI (Stoch RSI) is a momentum indicator that helps identify when an asset is overbought (ready to cool down) or oversold (potential reversal zone).

• Above 80 = Overbought (high probability of correction)

• Below 20 = Oversold (high probability of reversal)

Right now, ETH/BTC’s weekly Stoch RSI is deep in the oversold zone, a level where previous reversals have occurred.

📌 Example: What Happened Last Time ETH/BTC’s Stoch RSI Was This Low?

🔹 June 2022 – Bear Market Bottom for ETH/BTC

• ETH/BTC’s Stoch RSI hit oversold levels.

• Within 3 months, ETH gained 30% against BTC.

🔹 September 2019 – Pre-Bull Run Accumulation

• ETH/BTC was oversold for weeks, followed by a long-term uptrend.

• ETH outperformed BTC by over 50% in the following year.

The market doesn’t repeat, but it rhymes—and right now, the same setup is forming again.

📈 Bullish Divergence: A Strong Reversal Signal

A bullish divergence happens when:

📉 Price makes lower lows
📈 Momentum indicators (like RSI) make higher lows

This tells us that selling pressure is weakening, and smart money is accumulating before a reversal.

📌 Example: Past ETH/BTC Bullish Divergences

🔹 December 2016 – Pre-Bull Market Explosion

• ETH/BTC formed bullish divergence at 0.02 BTC.

• ETH exploded to 0.15 BTC over the next year (7.5x move).

🔹 July 2021 – Post-Crash Recovery

• ETH/BTC printed a bullish divergence at 0.055 BTC.

• ETH outperformed BTC by 50% in the next 6 months.

Now, in early 2024, we are seeing the same bullish divergence forming on the weekly chart.

This is a strong sign that ETH may soon reverse and start outperforming BTC again.

⚠️ The Key Resistance Zone to Watch

While the signals look strong, ETH/BTC isn’t in the clear yet.

There’s a major resistance zone between 0.06 – 0.065 BTC, where previous rallies have struggled.

🔸 If ETH/BTC breaks above this level, it could trigger a much larger move.
🔸 If it rejects, we could see more consolidation before the next big breakout.

Patience is key—but positioning before the move is where the real gains happen.

🎯 How 9-5 Traders Can Play This Opportunity

If you’re stuck in the 9-5 grind, this is one of those setups that can help you build financial freedom—but only if you position yourself correctly.

Here’s how to approach this ETH/BTC setup smartly:

✅ 1. Watch for Stoch RSI to Cross Back Above 20

• The most explosive moves happen when Stoch RSI curls up from oversold levels.

✅ 2. Monitor the Bullish Divergence Confirmation

• If ETH/BTC holds support and RSI continues making higher lows, the reversal is more likely to play out.

✅ 3. Identify the Key Breakout Level (0.06 BTC - 0.065 BTC)

• If ETH/BTC breaks this range, expect momentum to build fast.

✅ 4. Ride the Trend – Don’t Overtrade

• The best trades are often the simplest ones—spot the reversal, enter, and let the trend do the work.

🚀 The goal isn’t just to make one trade, but to build the skill of identifying these shifts early.

⏳ The Bigger Picture: Why ETH/BTC Matters for Your Portfolio

Most traders only think in dollar terms—but in crypto, the real game is outperforming Bitcoin.

💡 Why? Because BTC is the benchmark. If your altcoin isn’t beating BTC, you’re better off holding Bitcoin.

Right now, ETH/BTC is flashing a rare signal, one that has preceded ETH dominance surges in the past.

The market is giving you a heads-up. What you do next is up to you.

🚀 Are you just watching, or are you positioning yourself ahead of the move?

Join 9-5 traders to stay ahead.

— Victor