Ethereum price analysis: Paltry moves compared to Bitcoin

ETH/USD not managing to emulate Bitcoin, stopped in the upper range of the channel
Technical outlook showing upside bias inside rising channel, awaiting a breakout

Tomas Salles FXStreet

Ethereum price has seen strong bullish action for the recent days, with Ethereum now trading in the upper side of the bullish channel where the second most-traded cryptocurrency has been operating since mid-October. All-time highs were set at $547,58 and look difficult to be overcome right now.

ETH/USD current technical setup not showing any hints for a potential breakout of the current bullish channel. The possibility of an upwards acceleration looks meager right now. Actually, Ethereum is trading in a potentially profitable area for sellers, something that would be possible if ETH markets had already initiated negotiating futures contracts, as Bitcoin just did.

ETH/USD 4H chart

Ethereum’s 4-hour chart shows the current developments in its indicators:

MACD is accompanying the bullish move coming from 0. The outlook is wide open right now, but a new bullish impulse should be big or it will leave significant divergence.
Directional Movement Index is looking favorable to higher price zones in the short term, with sell orders at minimums. The ADX barely shows any directional strength, so that should be the indicator to watch if you are looking for more upside.

Ethereum price has risen up to 78% since mid-September, but it is not getting big headlines nor getting any high praise. Actually, that big rise is paltry compared to the Bitcoin incredible surge.

Let’s take a look at how ETH/USD, BTC/USD and XRP/USD have been trading for the last months in the following comparison chart.

ETH/USD vs BTC/USD vs XRP/USD

Bitcoin is the star of the show. The main cryptocurrency is the entrance door to the crypto investing world, which makes it much easier for BTC to attract fresh money. We can see how Ethereum and Ripple have a very similar profile. Both had been following Bitcoin’s moves until early October, when BTC got some steam and started its big bullish jump, getting a lot of separation from the other cryptos.

It’s easy to lose perspective when analyzing Cryptocurrencies if we think that since early September, Bitcoin has traded up 290%, Ethereum has risen 78% and Ripple “just” 18%. Any of these yields are impressive in such a short period, but evidently, any move looks paltry when compared to Bitcoin’s.

That said, it’s important to take a look at how BTC/USD is on a more advanced stage of its movement, with Ethereum now trading at highs and Ripple trying to regain steam.

At this point, discovering if any under-the-radar cryptocurrency will make a move similar to Bitcoin’s recent one can provide big benefits. If you can find on your broker or exchanger the possibility to conduct spread strategies, that can might be a pretty profitable move too.

Author

Tomas Salles

FXStreet

Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland.

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