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Cryptocurrency News Articles
Ether (ETH) Has Been Underperforming Bitcoin (BTC) By a Considerable Margin
Sep 30, 2024 at 03:00 am
The second biggest cryptocurrency by market capitalization hit a three-and-a-half-year low against Bitcoin on Sept. 18, last seen in 2021.
As Bitcoin ( BTC ) grinds within a narrow price range, traders and investors are keeping a close watch on Ether ( ETH ), which has been lagging considerably behind the flagship cryptocurrency.
After hitting a three-and-a-half-year low against Bitcoin on Sept. 18, the second-largest cryptocurrency by market capitalization has offered mixed signals. Some analysts see the low as a potential buying opportunity, while others believe Ether will continue to underperform.
After rallying to an all-time high of $4,891 in April 2021, Ether has failed to regain the lost ground despite Bitcoin hitting a new all-time high in March 2023. Polymarket, the world’s largest prediction market, gives 85% odds that Ether will not hit a new all-time high in 2024.
However, not everyone is bearish on Ether. Bitwise Asset Management’s chief investment officer (CIO) mentioned Ether in a Sept. 17 blog post while discussing assets that could perform well in an inflationary environment.
“For the contrarians out there, I’d also point to Ether as a potential contrarian bet through the end of the year. It’s down about 85% from its all-time high, and the narrative around the asset has shifted dramatically,” CIO wrote.
Could Ether make a comeback and outperform Bitcoin? Let’s analyze Ether’s chart against Bitcoin to find out.
ETH/BTC weekly price analysis
The long-term chart shows the formation of a symmetrical triangle pattern, which indicates indecision between the bulls and the bears. The bulls are defending the support line while the bears are mounting a strong defense at the resistance line.
Both moving averages are sloping down, and the relative strength index (RSI) is near the oversold zone, which suggests that the bears are in command. The ETH/BTC pair could drop to the support line, where buyers are expected to step in.
If the price rebounds off the support line and breaks above the moving averages, it will suggest that the pair may extend its stay inside the triangle for some more time. The next trending move could begin on a break above or below the triangle. A rally above the triangle gives the pair a pattern target of 0.18 BTC, which is above the current all-time high of 0.15 BTC.
ETH/BTC daily price analysis
The pair has been trading inside a descending channel for several months, making a series of lower highs and lower lows.
A minor positive for the bulls is that the RSI has made a positive divergence, and the 20-day exponential moving average (0.04 BTC) has started to flatten out. This suggests that the selling pressure may be reducing.
A break and close above the 50-day simple moving average (0.04 BTC) will signal the start of a move toward the downtrend line. The pair will indicate a trend change on a break and close above the channel.
This positive view will be invalidated in the near term if the price continues lower and breaks below 0.038 BTC. That could sink the pair to the channel’s support line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move carries risk, and readers should conduct their own research when making a decision.
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