Are ETH and BTC on a collision course? This article examines the potential for both pairs to rise and fall. Ethereum is gaining on Bitcoin as the latter struggles to find a bottom. If ETH and BTC increase significantly, it could mean more profits for ETH users. So, is ETH a better investment than Bitcoin?
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Ethereum (ETH)
ETH and USD are showing strong bullish momentum, with the price closing above $3,100 on Saturday. This bullish momentum is being propped up by Bitcoin’s bullish momentum and the supply-reducing EIP-1559 update coming next week. With such positive momentum, Ethereum may be in a position to enter an uptrend, though the path to $3,000 still has many obstacles to overcome.
On a daily chart, Ethereum trades between $1,139 and $1,042. It has fallen nearly 6% over the past 24 hours. Ethereum is the second-largest cryptocurrency by market cap, so its bullish breakout this week may prove challenging. Meanwhile, the current bearish pressure and strong support could hold back Ethereum’s rally. However, this week, we should expect a $1,139 resistance level breakout.
The price is above its 50-day moving average. That means that the price is moving higher than bitcoin’s, which is still hovering around its high of $2,089 (USD). The MACD moving average correlation indicator shows that the market has rebalanced and crossed over the long-term moving average. This crossover has resulted in significant increases in BTC’s price.
While Bitcoin is still struggling to recover from US$20k, Ethereum has surged to nearly 11%. It has been predicted as the next crypto king. According to digital asset management, the digital currency exchange-traded fund purchased 6,227 Bitcoin and 81,436 Ethereum for a total of $183 million.
Ethereum (ETH) and Bitcoin (BTC)
Despite its recent volatility, Ethereum is signalling a solid green when Bitcoin is still flickering. Its layer-2 network Optimism is forming a decentralized autonomous organization and plans on airdropping soon. This new network could become the next crypto king. While Bitcoin’s price continues to dip, Ethereum is gaining ground as investors continue to see more potential.
While many believe the ETH price will be higher, other analysts are skeptical. While the altcoins trade side-by-side with Bitcoin, their price action is very different. They are trading in lockstep with the former in the short term, but the longer-term trend shows a different story.
Initially, analysts thought Ethereum would overtake Bitcoin in terms of market cap, but since then, the pair has fallen sharply, and one ETH now only buys 0.025 BTC. This fall from grace only highlights Bitcoin’s dominance. Ethereum has experienced many firm corrections, though the price is currently in the mid-$9,600 range.
The amount of BTC leaving exchanges is the best indication of a bullish reversal. BTC wholesalers’ holdings have fallen to their lowest levels since May 17. Interestingly, the number of wholesalers has also reached an all-time high. As a result, most investors have continued to buy dips even when it appears that Bitcoin may not be able to sustain its recent rally.
However, the price action has not been so positive for Ethereum. It has been sideways trading for most of the month and struggles to gather momentum. The price was extremely volatile earlier this week, plunging to lows of $230, then rebounding to its current levels.
The lack of near-term trends and recent momentum have left many investors unsure of Ethereum’s potential. Now you should invest in cryptocurrencies wisely. For trading cryptocurrency bitcoin trading software is best software. You can see the values of cryptocurrencies while investing. Despite the recent volatility, analysts believe the cryptocurrency remains fundamentally strong.
Final Words
Although Bitcoin has failed to hold its recent lows in the lower-$11,000 region, the market may continue its upward move towards $42,330. Alternatively, it could fall back to the $37,470-$38,670 demand zone, where a sell signal may arise.
Further, it has risen by 36.5% in the last week. At the time of writing, there was no major resistance area beneath the price of Ethereum, although it has reached a support level between $1,790 and $2,130. Nevertheless, further falls may be limited by the $1,950 demand wall if this support level breaches.
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