A half-fig, half-grape week – Ethereum is in an explosive configuration against the dollar. However, it fails to keep up with the breakneck pace imposed by Bitcoin. Overview !
Ethereum versus the dollar: consolidation before the explosion?
Ethereum is trading at $ 394 at the time of writing. From a peak at $ 420 following PayPal’s announcement , Ethereum has consolidated above $ 382. This is an important level , as this level served as support in August and turned to resistance in September. Breaking through this resistance, with the subsequent pull back , and price consolidation above, points us to a short-term uptrend . However, a return below 360 dollars would invalidate this hypothesis.
Between the American pre-election week, gloomy stock markets and the rise of the Covid in European countries, the context is uncertain to say the least this week . However, the trend remains bullish on Ethereum on a weekly basis . Ethereum closed a new week above $ 400, levels worthy of 2018. We are emerging from a 2 year build-up period and here too the price is consolidating above its old resistance. (in red). The graphics setup is explosive for Ethereum.
Ethereum versus Bitcoin: a difficult pace to follow
After outperforming all summer, Ethereum continues to lose ground against Bitcoin. The support has been tested several times in recent weeks and Ethereum has finally given in in the face of repeated assaults from the cryptocurrency king.
We are in a short term downtrend. However, nothing maddening! This negative trend mainly stems from the hellish pace recently imposed by Bitcoin rather than a loss of speed of ETH.
Despite Bitcoin’s recent outperformance, Ethereum still remains in a medium-term bullish trend against it. This assumption remains valid, as long as the price is above the support zone (in green). Further market analysis will be required if the support area is depressed.