Ethereum Shows Strength vs. Bitcoin, Follows Gold Higher: Crypto’s Bull-Bear Case

ether ETH/USD surfaced over 3% higher on Tuesday showing strength vs Bitcoin BTC/USDwhich was only 1% higher.

The crypto sector was strong relative to the broader market, with the S&P 500 looking to close down 0.8%. In comparison, spot gold rallied nearly 2%, suggesting that the crypto sector may be following the commodity higher.

Ethereum’s surge saw the crypto break through a sideways trading pattern that had been dragging it since March 18th. The movement also confirmed that Ethereum is trading in an uptrend pattern.

An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate that the bulls are in control while the intermittent higher lows suggest periods of consolidation.

Traders can use moving averages to identify an uptrend, with rising lower timeframe moving averages (such as the eight-day or 21-day exponential moving averages) suggesting that the stock is in a steep short-term uptrend.

Rising longer-term moving averages (like the 200-day simple moving average) indicate a long-term uptrend.

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The Ethereum chart: Ethereum started trading in an uptrend on March 28th and has since made a higher low and two higher highs. The higher low was formed at $1,763 on Monday and the most confirmed recent higher high was printed at $1,847 on Friday.

• On Tuesday, Ethereum traded above the recent higher high, confirming that the uptrend is intact. If Ethereum closes the trading day near its daily high, the crypto will print a bullish Marubozu candle, which could indicate that higher prices are on the cards for Wednesday.
• If Ethereum closes the trading session with a significant upper wick, the crypto will print a shooting star candlestick, which could indicate that the next local high has occurred, and Ethereum will pull back to print at least one more higher low on Wednesday.
• For bulls swing trading Ethereum, the eight-day exponential moving average could be a good level to place a stop as the indicator has been testing the cryptocurrency since March 13.
• Ethereum has resistance above $1,957 and $2,000 and support below $1,846 and $1,717.

Read More: Shiba Inu Consolidates Alongside Dogecoin After Monday’s Sharp Surge: A Technical Analysis

Photo: Unsplash

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