Ethereum (ETH) Price Gives Mixed Signals but Still Likely to Outperform Bitcoin (BTC)

The Ethereum (ETH) price has struggled to regain its footing since deviating above the $1,660 resistance area. But despite this struggle, Ethereum is still expected to outperform Bitcoin (BTC).

Ethereum (ETH) Price Drop Incoming?

The technical analysis from the daily time frame shows that the Ethereum price action gives a mixed outlook. Initially, the ETH price broke out from a descending resistance line and validated it as support on Feb. 13 (green icon). Afterward, it reached a new yearly high of $1,742 on Feb. 16. 

However, the price has fallen since. The drop shows that the previous breakout is only a deviation (red circle) above the $1,660 resistance area, and the latter is still intact. 

Currently, the ETH price is approaching the channel’s resistance line once more. However, there is strong support at $1,408, created by the channel’s support line and the 0.5 Fib retracement support level. 

Since the daily RSI is falling, a drop to this level is the most likely scenario. 

On the other hand, reclaiming the $1,660 resistance area would invalidate this bearish forecast. In that case, the ETH price could increase to $2,000.

ETH/USDT Daily Chart. Source: TradingView

Similar to the price action, Ethereum news is also mixed. An Ethereum blockchain network upgrade that brings various improvements to the Ethereum ecosystem was deployed on March 2.

The upgrade will deal with decentralized applications and smart contract functionality. The Ethereum burn rate has decreased significantly since the middle of February, likely due to decreased interest in the non-fungible token (NFT) market. Finally, since the Securities and Exchange Commission (SEC) has not made a ruling on Ethereum’s classification, the token is at risk of being branded as a security. In that case, it would be subject to numerous regulatory requirements.

Ethereum (ETH) Bullish vs. Bitcoin (BTC)

While the ETH/USDT chart gives mixed readings, the Ethereum vs. Bitcoin price action and indicator readings are decisively bullish. 

Firstly, the price has created a double bottom at the support line of a descending channel. The double bottom is considered a bullish pattern, and channels usually lead to breakouts. Moreover, this entire movement was combined with bullish divergence in the daily RSI (green line).

As a result, an increase toward the resistance line and the ₿0.078 area is likely. 

On the other hand, a breakdown from the channel would invalidate this bullish outlook and could trigger a fall to the 0.618 Fib retracement support level at ₿0.063.

ETH/BTC Daily Chart. Source: TradingView

To conclude, while the direction of the ETH/USDT trend is unclear, the ETH/BTC movement is bullish. An increase to the confluence of resistance levels at ₿0.078 is expected. A breakdown from the channel would invalidate this and could trigger a fall to ₿0.063.

For BeInCrypto’s latest crypto market analysis, click here.


BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *