Ethereum Leads Bitcoin Into a Bullish Breakout


Key Takeaways

Ethereum has surged over the past few days, now targeting an upswing to $1,700. 
Bitcoin rose by more than 8% Monday but has yet to slice through a critical resistance level. 
BTC is currently following ETH’s path, which may result in further gains for both assets. 

Share this article

Bitcoin looks like it wants to catch up with Ethereum after the number two crypto’s bullish price action over the past three days. While ETH has outperformed BTC, the top crypto appears to be on the brink of a breakout.

Ethereum Takes the Lead

Ethereum is leading the revival in the cryptocurrency market after slicing through a crucial area of support.

The world’s second-largest cryptocurrency by market capitalization jumped to the $1,350 level over the weekend and has since rallied to almost $1,500. Improving sentiment surrounding Ethereum’s forthcoming “Merge” to Proof-of-Stake is one of the likely factors behind ETH’s recent upswing. Last week, Ethereum Foundation member Tim Beiko suggested a provisional launch date of September 19, 2022 for the blockchain’s crucial Proof-of-Stake update in the latest Consensus Layer Call, hours before ETH started to rally.

As speculation mounted, ETH printed a four-hour candlestick close above the $1,300 resistance level on Jul. 16 and has since risen by more than 16%. The formation of an ascending triangle on its four-hour chart projects a target of $1,700 in the near-term future. Still, ETH must first slice through the $1,500 supply wall.

ETH/USD four-hour chart (Source: TradingView)

Bitcoin appears to be following Ethereum’s path as the top cryptocurrency rose by more than 8% Monday. It’s now testing the X-axis of an ascending triangle that developed on its four-hour chart. A decisive close above this crucial area of resistance could trigger a 22% upswing toward $27,500. This bullish outlook derives from adding the height of the triangle’s Y-axis to the breakout point.

BTC/USD four-hour chart (Source: TradingView)

While the odds appear to favor the bulls, a break of vital support levels could signal an invalidation of the bullish thesis. ETH needs to hold the $1,400 level as support to avoid a downswing to $1,300. Similarly, if BTC suffers a rejection at $22,600, it could suffer a correction to $21,400.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies. 

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source

Recommended For You

About the Author:

Leave a Reply

Your email address will not be published.

PHP Code Snippets Powered By : XYZScripts.com