It’s been a while since we covered the price of Ethereum (ETH). As per our recent cryptocurrency prediction we called for the end of the crypto winter. That’s also what we see in the long term chart setup of Bitcoin (BTC). When it comes to Ethereum specifically we see relative strength against Bitcoin. For 10 consecutive days Ethereum is flirting with its breakout point. Presumably it needs more Bitcoin strength before Ethereum can turn its bear market into a new bull market.
Essentially the bear market chart from Ethereum says it all.
However, it is easy to get caught up in the short term chart timeframes. As per our crypto investing tip #4 from the recently published guide 50 cryptocurrency investing tips for 2019 and 2020:
All investing principles as well as chart analysis techniques apply to cryptocurrency investing. Surprisingly, most if not all cryptocurrencies have clear and concise chart patterns. They serve as the basis for timing the market with great entry and exit points.
The timeframe we have chosen for Ethereum’s price chart is the daily, and we focus only on the bear market channel as seen below.
Visibly, Ethereum is flirting with its breakout point for 10 consecutive days now as indicated with the yellow circle (annotation ours). In relative terms Ethereum is stronger than Bitcoin at the time of writing.
However, we cannot believe that Ethereum can turn its long and vicious bear market into a new bull market without Bitcoin leading the way. That’s, according to us, the message of this chart. For instance, note that the Feb 24 pop qualified as a ‘failed breakout’ presumably for the same reason.
Ethereum is clearly waiting for Bitcoin to lead its way higher, out of the bear market. Ethereum has not sufficient power in terms of market cap to lead the way.
Interesting chart fact: note that this is now touch #3 of resistance after May and July 2018. However, at support, we only see 2 touches. There is a risk that if this breakout does not take place a nother test of December lows or even worse test of support at much lower prices will take place.
We really want to see Ethereum break out for 3 consecutive trading days before getting too excited!
