As bitcoin readies for its own breakout from a bullish pennant, $ETH is traversing inside of a bullish flag that encompasses the 200-day moving average.
Time for ethereum?
The current more than 100% upward move from bitcoin since the beginning of this year has eclipsed the 50% move that ethereum has gained over the same time period. Also, the 28% rally over the last two weeks for $BTC compares favourably to $ETH’s 16%.
With this sort of price action very much in bitcoin’s favour it must be wondered if the time for a swing towards ethereum is approaching? Bitcoin broke through its own heavy resistance and the all-important 200-week moving average, so now it is ethereum’s turn.
$ETH is currently traversing a large upward sloping channel and last touched bottom around two weeks ago at a price of just over $1,500. Since then, the price has broken a down-sloping trendline and has come up against the 200-day moving average.
Source: Trading View. Daily time frame.
$ETH bull flag
Looking at the shorter time frame of 4 hours, it can be seen that the $ETH price is hugging the 200-day MA and that this moving average intersects the bull flag about one third of the way up from the flag bottom.
Source: Trading View. 4-hour time frame.
A measured move for the bull flag is north of $2,000 and could see $ETH making its way back towards the top of its channel. For a bull market to properly ensue in crypto, a gathering of momentum for ethereum would be necessary.
Last line in the sand
Finally, there would need to be a reversal and bounce for the ETH/BTC pair. $ETH broke down out of a downward sloping wedge pattern three weeks ago - a move that should be considered quite bearish for $ETH.
However, the price has held at the convergence of support and an upsloping trendline that goes all the way back to early September of 2019. If ever there was a line in the sand - this is it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
