All eyes are on Bitcoin, however Ethereum could start to rise soon, which I forecast based on reading several technical and fundamental signals that we will be reviewing below.
At the time of this writing, ETH is trading at $ 3,581.07, accumulating a gain of 4.18% in the last 24 hours.
In the weekly ETH vs BTC chart we note how it has been quite overshadowed by the performance of the largest cryptocurrency.
Despite this, the upward trend observed in this graph remains intact. Just today a support at 0.064 BTC is being defended, and this may be a good point to start a new momentum.
The 8-week EMA and 18-week SMA are crossed to the upside and are currently working as dynamic supports.
If Ethereum soon manages to accelerate its rate of rise, which is most likely, then it seems quite feasible that local highs will be reached against Bitcoin in the short term.
Otherwise, losing support at 0.064 BTC, the ground would be clear for a fall to a low of 0.054 BTC.
Ethereum vs Bitcoin weekly chart. Source: TradingView.
The bulls begin to return
After a big sell-off of long positions when ETH fell below $ 3,000, there are now signs telling us that traders are aggressively opening new positions.
In an analysis of ReyStockCapital we see how open financing and the interest rate for ETH futures are increasing strongly, which speaks of an increase in long positions.
Quick Review of ReyStockCapital. Source: CryptoQuant.
Ethereum is only being swept up in Bitcoin, but it will eventually have its own pump
The trader CoinMamba, assures that the gains that we are seeing from Ethereum are only part of the general positivism caused by Bitcoin, which does not allow it to rise so strongly.
This usually happens, but sooner rather than later ETH is driven by its own catalyst, managing to accelerate quickly.
In the tweet, the trader indicates that it is possible that BTC will break its all-time high first, suggesting that the rally of the largest cryptocurrency should cool down to make room for others to gain strongly as well.
$ ETH is just being dragged on by $ BTC here. But it will eventually have its own pump. I guess $ BTC needs to break its own ATH first ..
– CoinMamba (@coinmamba) October 6, 2021
ETH vs USDT daily chart technical analysis
From this time frame we see that Ethereum has managed to maintain its short-term uptrend, although not as strongly as Bitcoin.
Now a developing momentum is being hampered by resistance at $ 3,616, but that barrier is quite likely to be crossed in the next few hours.
If that level is exceeded, the next target will be $ 3,958. Then, it would only be necessary to overcome the resistance left by the historical maximum.
Ethereum is overshadowed by Bitcoin, but it may soon start to rally strongly. Chart Source: TradingView.
The weekly chart is quite bullish
The big long-term trend is building momentum that is only just beginning, and it is likely looking to set a new all-time high well away from the current one.
The week of September 20, a small retracement appears to have ended above the support at $ 2,884.
The moving averages EMA of 8 and SMA of 18 weeks are crossed to the upside, and working as dynamic supports.
Now the bullish determination of last week’s candle, coupled with the continuation we are seeing, tells us that it is quite possible that we will see new price records in the near future. When this happens, volatility will increase, and most likely Ethereum is the one who temporarily overshadows Bitcoin.
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