The Ethereumย (ETH) price has outperformed Bitcoinย (BTC) during the past four weeks, despiteย theย factย that the ETH/USD price has fallen.
The wave count and indicator readings from the daily time frame suggest that the price will continue to outperform BTC, reaching highs not seen since 2018.
Ethereumย (ETH) Price Fails to Sustain Increase
The technical analysis for the weekly time frame in the ETH/ Bitcoin pair is mixed. The price has traded in a range betwixt โฟ0.055 and โฟ0.078 since May 2021.
A trading range is a neutral sign since the price usually bounces betwixt the support and resistance lines before an eventual movement outside of its confines.
It is possible that the price is trading inside a descending parallel channel. Nonetheless, the patternโs support line has not been validated sufficiently.
If the pattern gets confirmed, the fact that the price trades in its upper portion would be a positiveย tendency sign. Inย contrastย toย the support line, the midline has been validated numerous times (green icons).
Furthermore, the weekly RSI gives a mixed reading. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an investment.
If the RSI reading is over 50 and the tendency is upward, bulls have an advantage, but if the reading is below 50, the opposite is true. The indicator is increasing but remainsย under 50, supplying no clues as to what the trendโs direction is.
Ethereumย (ETH) Price Prediction: Has the Price Reached a Bottom?
The daily time frame outlook provides a positiveย tendency outlook for numerous reasons.
Firstly, the wave count suggests a bottom has been reached. Utilizing the Elliott Wave theory, technical analysts examine longstanding price patterns and investor psychology that recur to determine the direction of a tendency.
Reportsย by the count, the price has completed an A-B-C corrective structure (white), in which wave B took the shape of a triangle.
The fact that the correction ended right at the 0.618 Fib retracement levelย ofย support supports this possibility.
Followingย that, the daily RSI has generated a positiveย tendency divergence. This is an occurrence in which a momentum decrease does not accompany a price decrease. It often leads to positiveย tendency tendency reversals.
Furthermore, the indicator is now over 50, another sign of a positiveย tendency tendency.
Regardlessย of this positiveย tendency Ethereumย (ETH) price prediction, a fall below the wave C low at โฟ0.062 will mean that the tendency isย still bearish.
In that case, a decrease to the โฟ0.058 support area will be the possiblyย likely scenario.
