Ether-Bitcoin Ratio Squeeze Signals Imminent Volatility Ahead of Upgrade
Traders should monitor the ETH/BTC ratio, which is poised for significant volatility due to a Bollinger Bands squeeze. Key points include:
- Bollinger Bands indicate low volatility when they contract tightly around an asset's price.
- The ETH/BTC bands are currently the tightest since June 2020.
- A breakout from these bands is expected to lead to strong price movement in either direction.
- Ethereum's upcoming Pectra upgrade on May 7 aims to enhance scalability and validator operations.
- The upgrade increases validator staking limits significantly and improves block data capacity.
- Layer-2 networks and DeFi sectors are expected to benefit from the changes.
