Both Bitcoin (BTC) and Litecoin (LTC) are seeing seriously shocking rallies in past days and weeks - and have more or less left Ethereum (ETH) in the dust. The leading smart contract crypto has been languishing, unable to execute its own breakout. But, at the same time, it looks to be resting on its own solid support.
A couple of days ago, on June 13, Ethereum looked to be breaking to the upside out of a lengthy consolidation pattern. But it seems that Bitcoin’s resumption of its own shocking breakouts put Ethereum on the backburner once again: the breakout was quickly dumped through the retest zone, straight back to the bottom of the pattern.
This bottom uptrend, however, seems unlikely to break - if for no other reason than ETH/BTC is already near historic lows, and the general atmosphere in crypto is now becoming very bullish indeed. Ethereum is indispensable to the ecosystem, and it seems unlikely that Ethereum bulls will let it capitulate - now, of all times.
Looking at the ETH/BTC daily, we see a tepid situation. It looks like the RSI channel will hold, and the second crypto seems to be simply biding its time until Bitcoin takes a break. The entire formation, coming off a huge breakout in early May, does in fact resemble a giant bull flag. For those predicting an eventual breakout, it presents a good opportunity to accumulate.
Looking at the weekly ETH/BTC chart will help place the overall trend. As stated above, ETH/BTC is already quite near historic lows. Furthermore, the huge double bottom visible has a major bullish divergence on the RSI.
A return to this support level would be disastrous - and a loss of this level would take ETH back more than two years in terms of price history. Again, with the increasingly bullish atmosphere, this seems nearly impossible.
If we glance at the ETH/USD chart, we see a much different story. Price is clearly uptrending and clearing resistance levels.
However, ETH/USD is really just an extension of Bitcoin’s chart at this point, due to the inflating effect Bitcoin’s price has on all other cryptos. With Ethereum mostly flat, it is hard to tell the difference between the two when placed side by side.
Overall, ETH seems strong for the medium term and even stronger in the long term. It hasn't had as much action as the two other top three cryptos - Bitcoin and Litecoin - which leads us to wonder what’s in store.
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