ETH and AVAX are this week’s breakout stars, each posting impressive gains over the past 7 days. But which one shows a stronger breakout pattern and has the momentum to keep running?
Positive macro developments in the last few days have awakened sleeping crypto giants.
In the last 7 days, for example, Ethereum prices have jumped 41%, helping the top altcoin rally above $2,700 for the first time in close to three months.
Avalanche is also up by 32% in the week and back above $25 for the first time since early February.
But which is the better buy? Of the two smart contract platforms, whose native token has a stronger breakout force and is expected to sustain this uptrend? We answer this by analyzing both digital currencies below.
Ethereum (ETH)
Ethereum is rallying today because it has overcome the two handles that had continually suppressed its price action for the last three months.
First is geopolitical tensions across the world and the pause of the aggressive tariff war between the US and China. Secondly, the Ethereum Pectra upgrade that had been delayed went live in the first week of the month.
The positive developments have triggered an explosive upward price correction and bullish investor sentiment toward ETH.
On the daily timeframe price chart, for example, ETH’s RSI reading has jumped from 54 last week to 75, which is a cool off from the highs of 83 two days ago. The MACD is also solidly bullish and stuck firmly in the positive territory.
The coin is now testing the critical resistance level of $2,750. A break above this level will see it explode into a run toward the next resistance level of $3,400, after which it will ascend above $4,000 and possibly a price record.
Avalanche (AVAX)
Avalanche’s surprising gains in the last week could be attributed to two key factors. First is the recovery for the broader crypto market. The second is the renewed investor optimism toward the Avalanche network.
Among the factors fueling this positive sentiment is the adoption of Avalanche by Dantawada town in India, which has digitized over 700,000 land records on the network.
The multi-billion-dollar investment fund, VanEck, added to the investor confidence in Avalanche when it launched its tokenized VanEck Treasury Fund (VBILL) on the network.
These positive developments have helped AVAX escape the two-month consolidation zone between $14 and $23. The top altcoin has also breached the $23 resistance level and may soon break into a run toward the next resistance level around $40.
Its RSI reading has jumped from 43 to around 63, while the MACD lines are rising into the positive territory.
Conclusion: Ethereum vs Avalanche?
Based on technical indicators, Ethereum has a better breakout setup as it broke out of consolidation with a more convincing uptrend and has sustained the bullish candles. Its MACD and RSI are also hugely bullish, indicating a conviction behind the move.
AVAX, on the other hand, has not had a strong follow-through of its bullish breakout of the consolidation zone. Its MACD and RSI, though bullish, aren’t as explosive, which indicates investor hesitation about its price action in the immediate future.
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