Ethereum, Bitcoin, ETH/USD, BTC/USD Talking Points:
- Cryptocurrencies have started to show recovery but that appears to be uneven with Ethereum[1] showing greater strength than Bitcoin[2].
- The analysis contained in article utilizesprice action[3] and chart formations[4]. To learn more about price action or chart patterns, check out our DailyFX Education[5] section.
Cryptocurrencies are continuing to show hints of recovery after a really rough two-week-stretch. That recovery does appear to be a little brighter in Ethereum at the moment, which highlights a bigger theme that’s become more prevalent in 2021 as Ether is appearing to steal some of the crypto spotlight from the titan of Bitcoin.
At this point, there could be a bullish justification for Ethereum given the hold at higher-low support around the 50% Fibonacci retracement of the recent major move, spanning from the Jan 11 low up to the May high.
To learn more about Fibonacci[6], check out DailyFX Education[7]
Ethereum Daily Price Chart
Chart prepared by James Stanley[8]; Ethereum on Tradingview[9]
Bitcoin, on the other hand, doesn’t look as healthy as there’s been a continued build of resistance around the $40k handle that’s capped this week’s recovery, at least so far. On the below chart, I’ve added a Fibonacci retracement around a similar major move, spanning from the January 4th low up to the April high.
Bitcoin Daily Price Chart
Chart prepared by James Stanley[10]; Bitcoin on Tradingview[11]
Bitcoin v/s Ethereum
A big driver behind the crypto rally was wider acceptance of cryptocurrency, led in part by the announcement from Tesla that they were a) going to put Bitcoin on their balance
