- Ethereum has consolidated alongside Bitcoin in recent days, with bulls and bears currently locked in a heated battle as its price hovers around $ 450.
- The next market trend will largely depend on whether Bitcoin can stabilize or move higher
- Global stock market volatility following vaccine news could also play a role in BTC’s price action in the coming week
- As ETH is a higher beta game, there is a strong possibility that it will outperform BTC on the upside and underperform on the downside.
- An analyst is pointing to some immense signs of strength that Ethereum has been flashing in recent times, pointing out that it could bottom out against Bitcoin
Ethereum has struggled to match the gains seen by Bitcoin in recent weeks. This trend has started to change, with its recent rally from lows of $ 380 to highs of $ 460, which has significantly strengthened its technical outlook.
However, cryptocurrency still has a long way to go before it can match Bitcoin’s earnings over the past month or so.
A trader is now noticing that he sees some strong indications that Ethereum is bottoming out against its Bitcoin trading pair.
Ethereum consolidates together with Bitcoin
At the time of writing, Ethereum is trading down just under 2% at its current price of $ 446. This is around the price it has been trading at for the past few days, with buyers unable to firmly break the $ 450 resistance. .
This level remains vital for the cryptocurrency, and tipping this resistance into a solid support may be all it needs to see another leg above $ 500 +.
Whether or not it can exceed this level will mainly depend on Bitcoin and the rest of the cryptocurrency market.
ETH / BTC posts strong weekly close, but weakness remains
While sharing his thoughts on where Ethereum could evolve in the short term, an analyst explained that although it recorded a strong weekly close against its Bitcoin trading pair, there are still signs of weakness.
He argues that the process of bottoming out has just begun and there is still some work to be done before it reaches bottom.
“Strong weekly close for ETH BTC. I think the underlying process has started right now. The daily trend is still very bearish and it will probably take some time to establish a range and reset before a continuous uptrend can occur. Holding .0285 would be a good start. “
Image Courtesy of Smokey. Source: ETHBTC on TradingView.
The next few days should provide information on Ethereum’s outlook versus Bitcoin, as there is a good chance that market volatility will increase.
Featured image from Unsplash. Charts from TradingView.