Will the Ethereum Bitcoin ‘flipping’ happen during this cycle? What the chart says – Ethereum – US Dollars ($ ETH)
ether (CRYPTO: ETH) broke bullish from a daily inside bar at 10 a.m. EST on Tuesday and attempted to stay above Monday’s daily high in the afternoon.
Former Managing Director of Goldman Sachs and Founder and CEO of Real Vision Raoul Pal in an interview with the CEO of Hedgeye Keith McCullough said the “flip” when the market capitalization of Ethereum is that of. will surpass Bitcoins (CRYPTO: BTC) could happen during this market cycle. Pal also said that he doesn’t think Ethereum is a better asset for Bitcoin and expects the price of Bitcoin to hit $ 1 million in the future.
Ethereum’s market cap is currently around $ 509 billion, compared to Bitcoin’s market cap of $ 1.08 trillion. Ethereum would have to rise to around $ 9,000 while Bitcoin’s price stayed the same for this to happen immediately.
Ethereum certainly looked more bullish on Tuesday, trading over 5% higher compared to Bitcoin, which was up less than 2%.
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The Ethereum Chart: On November 16, Ethereum broke bearishly from a rising channel, as Benzinga pointed to large bearish volume on November 11. The high volume that went into the crypto when the pattern broke out confirmed that the pattern had been recognized, which was a red flag for Ethereum bulls.
Ethereum has since traded in a sideways consolidation pattern between $ 3,960 and $ 4,438 for the past 7 days. As it was consolidated, Ethereum created an uptrend pattern on the daily chart, with a high on November 20th at $ 4,322.86 and a higher low on November 22nd at $ 4,024.45. In order for the upward trend to continue, Ethereum must rise above the daily high of November 20 in the near future.
The retracement and subsequent consolidation helped cool Ethereum’s Relative Strength Index (RSI), which was in the 60-70% hot range between October 14th and November 11th,% level it will be overbought, what a sell signal can be for technical traders. Ethereum’s RSI is now at a much more comfortable 49%.
Ethereum is trading above the eight-day exponential moving average (EMA) but slightly below the 21-day EMA, with the eight-day trend below the 21-day trend, indicating indecision. If Ethereum can regain the 21-day EMA as support and stay above it, the 8-day day will cross over the 21-day rate again, which would be a bullish sign for the future.
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- Bulls want Ethereum to be propelled back above the 21-day EMA and resistance level at $ 4,384.43 with continued large bullish volume, which could give crypto the boost it needs to print a higher high. Above that level, Ethereum has resistance at $ 4,384 and its all-time high of $ 4,867.81.
- Bears want to see large bearish volume and move Ethereum back below the 8-day EMA, which could cause the crypto to retest the support at $ 4,168.56. Below the range there is further support at $ 3,949.45.