In this analysis we discuss what is still the second largest cryptocurrency, Ethereum. There has been a lot of talk in recent years about so-called ‘Ethereum killers’, but let’s be honest: no coin has managed to become big enough to truly compete with Ethereum.
Today the focus is on the weekly chart. It’s time to zoom out and discuss a major bullish breakout. Next we also come to the ETH/BTC chart, which shows which of the two cryptocurrencies is performing better. Is the Ethereum era over or can we expect another good rise? More Later.
Ethereum price position
We can safely say that Ethereum looks very positive when we look at the weekly chart. The price managed to break out of the falling channel and this keeps the attention focused upwards. A price target is linked to this pattern. That works out to about $2,030, an increase of as much as 12%. Will Ethereum finally trade above $2,000 again?
We must be clear that a further increase can only be achieved if the upward trend in the crypto market continues. Bitcoin often determines the direction of the market price, so it is important to keep an eye on the price movements of this currency.
Let’s face it: Bitcoin has been rising very quickly in recent weeks, but the growing signs point to an exhausting trend. The Relative Strength Index (RSI), an indicator that shows the strength of the trend, is well above a healthy level. In addition, we also see a sharp decline in purchasing volume. In short: Bitcoin is approaching its peak.
What impact will this have on the price of Ethereum?
Since Bitcoin usually sets the trend, it can be assumed that the formation of a top could have a significant impact on Ethereum and the target price would not be reached. However, this is very simple.
There is still an ETH/BTC valuation. This is a graph showing which of the two cryptocurrencies is performing better. Recently, Bitcoin overtook Ethereum as less and less Bitcoin was needed to purchase the same amount of Ether. Still, a wave seems imminent, which is good news for Ethereum.
A rise above the red resistance line and Ethereum could outperform Bitcoin. That’s why it’s important to keep an eye on this line on the weekly chart. If the price closes a weekly candle above it, buying Ethereum is better for you than buying Bitcoin.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
