Subdued price action
In 2023, ethereum’s price action has been relatively calm compared to bitcoin. While bitcoin has gained 161% this year, ethereum has only seen a 103% increase. This means that those who held bitcoin instead of ethereum would have made over a third more profit this year.
However, ethereum’s slower rise in value may be attributed to the transition from proof-of-work to proof-of-stake consensus mechanism. Despite this, the network’s successful transition has instilled confidence in ethereum developers and its community.
$ETH break out
As the year comes to an end, the ethereum price seems to finally be breaking out of its stagnant phase. The ascending triangle that ethereum has been in since June 2022 was recently surpassed, indicating a positive shift in momentum.
The price of ethereum is currently facing strong resistance at $2,400. If it can overcome this resistance, it could potentially reach $3,000 and even $3,500.
Zooming in on the short 4-hour time frame, ethereum is respecting the upward trend line and has successfully broken through local resistance. This suggests that ethereum may continue to rise in the near future.
Is $ETH finally turning the corner?
On the short time frame against bitcoin, ethereum is showing signs of turning the tide. Throughout the year, bitcoin has dominated ethereum, but now ethereum is beginning to show signs of strength.
While this shift is still on a micro scale and a larger trend needs to form, it is a positive start for ethereum. This could be the beginning of a turnaround for ethereum against bitcoin.
A huge brick wall
Looking at the weekly time frame, it becomes apparent how significant the challenges are for ethereum as it aims to continue its upward movement against bitcoin. Ethereum not only needs to break above the upward trend line but also overcome a significant resistance level.
If ethereum manages to accomplish this without being rejected, it could pave the way for further gains and potentially stimulate other altcoins. This could potentially mark the beginning of an altcoin season.
Hot Take: Ethereum Breaks 6-Week Downward Trend Against Bitcoin
The recent breakout of ethereum from its downward trend against bitcoin is a positive sign for the cryptocurrency. Despite lagging behind bitcoin in terms of price action this year, ethereum’s successful transition to the proof-of-stake mechanism has instilled confidence in its future prospects. While there are still challenges ahead for ethereum, such as breaking through resistance levels, this breakout could potentially mark the start of a turnaround. If ethereum can continue to gain momentum and overcome these challenges, it could pave the way for further gains and stimulate the rest of the altcoin market.
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