Time for Ethereum?
Bitcoin has experienced a significant upward move of over 100% since the beginning of the year, surpassing Ethereum’s 50% gain during the same period. Additionally, Bitcoin has seen a 28% rally in the past two weeks, compared to Ethereum’s 16%. Given Bitcoin’s strong price action, it raises the question of whether it is now time for a shift towards Ethereum. Bitcoin has broken through heavy resistance and the crucial 200-week moving average, so now it may be Ethereum’s turn.
Ethereum is currently moving within a bullish flag pattern that includes the 200-day moving average. It recently hit a low of just over $1,500 and has since broken a downward trendline, approaching the 200-day moving average.
Source: Trading View. Daily time frame.
Ethereum Bull Flag
On the shorter time frame of 4 hours, we can observe that Ethereum’s price is closely following the 200-day moving average, which intersects with the bull flag about one third of the way up from the bottom. This indicates potential bullish momentum.
Source: Trading View. 4-hour time frame.
A measured move for the bull flag suggests a target price above $2,000, which would bring Ethereum back towards the top of its channel. In order for a bull market in crypto to truly take off, Ethereum needs to gather momentum.
Last Line in the Sand
Another important factor is a reversal and bounce for the ETH/BTC pair. Three weeks ago, Ethereum broke down from a downward sloping wedge pattern, which is typically considered bearish. However, the price has found support at the convergence of a support level and an upward sloping trendline dating back to September 2019. This level can be seen as a critical point for Ethereum’s performance.
Note: The article above is a commentary and an opinion piece. It does not constitute investment advice. Investing in cryptocurrencies involves a high degree of risk and may not be suitable for all investors. Always conduct your own research and seek professional advice before making any investment decisions.
Hot Take: Ethereum’s Chance to Shine
As Bitcoin continues its bullish momentum, surpassing key resistance levels, it raises the possibility of Ethereum taking the spotlight next. Ethereum’s recent performance, coupled with its current position within a bullish flag pattern, suggests potential for a significant upward move. With a target price above $2,000 and the need for a reversal in the ETH/BTC pair, Ethereum faces a crucial moment that could determine its future trajectory. If it manages to gather momentum and overcome key obstacles, Ethereum might just have its chance to shine in the crypto market.
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