HomeContributorsTechnical AnalysisEthereum Could Outperform Bitcoin and Rally – Here's Why

Ethereum Could Outperform Bitcoin and Rally – Here’s Why

Key Highlights

  • Ethereum remained in a positive zone after all investigation was dropped by the SEC.
  • ETH price is facing resistance near $3,700 on the daily chart.
  • Bitcoin price extended losses and declined below $65,000.
  • Gold prices might gain pace for a move toward the $2,365 level.

Ethereum Technical Analysis

Ethereum struggled to surpass the $4,000 level and corrected gains. However, ETH declined less compared to Bitcoin, but there was a move below $2,700.

Looking at the daily chart, the price traded below the $3,500 level. There was a spike below the 50% Fib retracement level of the upward move from the $2,855 swing low to the $3,975 high.

However, the bulls were active near the 100-day simple moving average (red), and the price is well above the 200-day simple moving average (green). On the upside, ETH is facing resistance near the $3,600 level.

The next major resistance is near the $3,700 level. There is also a connecting bearish trend line with resistance at $3,700 on the same chart. A daily close above the $3,700 resistance zone could start another steady increase.

In the stated case, the price may perhaps rise toward the $3,880 level. The next stop for the bulls may perhaps be near the $4,000 level.

If not, the price might resume its decline and test the $3,300 support level. The next major support is near $3,220, below which the price could slide toward $3,050. Any more losses might call for a move toward the $3,000 level and the 200-day simple moving average (green).

Looking at Bitcoin, the bears were able to push the price below $65,000, but downsides might be limited below $62,000.

Economic Releases

  • BoE Interest Rate Decision – Forecast 5.25%, versus 5.25% previous.
  • US Initial Jobless Claims – Forecast 235K, versus 242K previous.
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