Monday, January 17

Ethereum could be a better option than Bitcoin in the short term

After Bitcoin caused negativism throughout the crypto market, Ethereum took the opportunity to gain prominence, quickly recovering and creating a rather encouraging scenario.

At the time of this reaction, ETH is trading at $ 4,118.76, accumulating a gain of 1.97% in the last 24 hours and 0.99% in the last 7 days.

BTC for its part is trading at $ 48,556.74, gaining 0.47% during the last 24 hours, but losing 10.43% in the last 7 days.

This large difference in profit in dollars, caused the ETH vs BTC pair to jump towards a 3-year high, crossing the most relevant immediate resistance, and confirming the validity of a fairly clear bullish pennant.

Now thanks to this, Ethereum could be a more attractive cryptocurrency than Bitcoin, if we talk about short-term returns; as it is quite likely that it will be a bigger dollar winner in the next few weeks.

Ethereum vs Bitcoin weekly chart. Source: TradingView.

This occurs while on-chain metrics also defend the fundamental strength of Ethereum. ETH reserves on exchanges are declining rapidly. Financing rates and open interest are also falling, speaking of a healthy cooling off from the high leverage we have seen in the market for days past.

The wave of large liquidations has already been left behind. It seems quite likely that the weak hands have already exited the market, ushering in a more organic rally below.

Ethereum price technical analysis against the dollar

In the daily ETH vs BTC chart we see the great price drop that occurred yesterday, which looked for the support zone around $ 3,500.

Now we see how almost all of that decline was quickly wrapped, leaving a strong rejection of low prices, which may be heralding the bottom of the pullback.

We still do not see the bulls with determination to regain control; we are likely to see a few more losses in the next few hours / days.

However, it is possible that the selling power will soon be exhausted, marking a higher low, and demonstrating the inability of the bears to continue dragging the price lower.

Ethereum daily chart technical analysis.  Source: TradingView.
Ethereum daily chart technical analysis. Source: TradingView.

In the weekly chart we see that the fall is not really relevant if we compare it with the upward force of previous months.

Strong rejection of low prices appears to be setting the stage for a mid-term pullback.

Now when new momentum begins, new all-time highs could be reached quickly.

As long as the price does not mark lower lows in this time frame, then it is not a good idea to think that the decline is going to last much longer.

All our publications are informative, so in no case should they be followed as investment advice.