As Bitcoin prepares for its major breakthrough, Ethereum seems to be in a strategic phase, accumulating energy for potential growth. Has the time come for Ethereum after Bitcoin’s successes?
The contemporary dynamic cryptocurrency market brings many surprises. However, among all cryptocurrencies, two stand out as particular magnets for investors’ attention – Bitcoin (BTC) and Ethereum (ETH). Over the past few months, Bitcoin has recorded an impressive value increase of over 100% since the beginning of the year, while Ethereum has gained “only” 50% in the same period.
In the last two weeks, the growth rate of Bitcoin was also more impressive, with a 28% increase compared to a 16% rise for Ethereum. Such dynamics lead to the question – after such dominant behavior of Bitcoin, is the Ethereum era coming?
Ethereum’s current trajectory suggests a possible breakthrough. The exchange rate of this cryptocurrency traces a large, rising channel, and its last low occurred about two weeks ago when its value was just over $1,500. Since then, Ethereum has broken the negative trend line and approached the 200-day moving average.
Looking at a closer period, the 4-hour chart shows that Ethereum’s price is close to this 200-day moving average. This average intersects the bull flag roughly a third from its bottom edge. Indicators point to a potential increase in Ethereum’s value above $2,000, which could mean a further return to the upper channel boundary. A proper bull market in crypto might require increasing the momentum of Ethereum’s growth.
However, to confirm Ethereum’s strength, it would be necessary to reverse the trend and rebound the ETH/BTC pair. Ethereum has recently experienced a downturn, which might have been taken as a bearish signal. Nevertheless, its value remains at the convergence of support and the rising trend line, which dates back to September 2019. If there is a symbolic boundary for Ethereum, it is this one.
The cryptocurrency market is unpredictable, but current indicators suggest that Ethereum might be on the verge of a pivotal moment in its history. Does this mean that after years of Bitcoin’s dominance, Ethereum might finally emerge from its shadow and establish itself as an equally strong currency? Only time will tell.
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