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Ethereum Uppercuts Bitcoin

Published 18/09/2019, 07:38

BTC Chart

Ethereum has been an outperformer this week in the crypto space, after breaking out of a bullish wedge. Week to date, Ethereum (ETH) has rallied over 17 whilst a tailgating Ripple (XRP) is hot on its heels, both of which have left Bitcoin (BTC) for dust which traders -0.3% lower. Yesterday it was announced that Aztec, a company focussed on privacy-centric tools, has begun a 30-day ignition ceremony to roll out its workaround for “private transactions” on ETH, which appears to have helped it break above 203.95 resistance.

ETH/USD Daily Chart

We can see on the daily chart that ETH produced a slight bullish divergence with RSI whilst its bullish wedge took shape. After a lackluster breakout, it appeared the pattern was on the brink of failure, yet prices held above the 164.12 low before building up bullish momentum ahead of the trend’s acceleration. RSI has not reached overbought territory on the daily chart. And besides, a momentum high does not always mean a price high (as we need to allow for a divergence to form).

ETH/USD 240 Min Chart

With the bullish wedge now in play, bulls could target the $240 high at the base of the wedge.

  • A break above 217.33 assumes a run for the 240 high, although traders could look to buy dips above 203.95 support.
  • RSI is currently overbought, and a bearish pin bar has appeared to warn of near-term exhaustion. However, given the strength of daily RSI, prices might consolidate or provide a relatively shallow retracement before breaking higher.
  • Ultimately, the four-hour trend remains bullish above 188.83, so bulls could look for a higher low to materialize before considering buying any dips.

Related analysis:
Contrasting Signals On Bitcoin (And Crypto) Call For A Cautious Approach | BTC, ETH, LTC

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Any references to historical price movements or levels are informational based on our analysis, and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."

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