As Bitcoin ($BTC), Solana ($SOL) and others have led the cryptocurrency fight-back, Ethereum (ETH) the number two cryptocurrency by market capitalization has seriously underperformed. However, now that $BTC has pulled back from its all-time high, $ETH has remained strong. Could this be a turning point?
A dismal time for $ETH bulls
Ethereum investors have been dismally watching from the sidelines for many months now, as Bitcoin has grabbed all the attention, ably assisted by Solana, the biggest layer 1 competitor to Ethereum.
Since the $ETH price surpassed $4,000 in early March, it has been mostly sideways and downwards since then, not only losing value against the US dollar, but also against both $BTC, $SOL, and many of the best-performing cryptocurrencies.
$ETH close to breakout against $USD
Source: TradingView
Could this be about to change? Against its dollar pair (ETH/USD), the $ETH price looks to be consolidating nicely above the $2,500 support. If a continuance of positive price action can take place from here, and $ETH is able to break through the descending trendline, it could be a case of onwards and upwards. The weekly Stochastic RSI at the bottom of the chart is signalling strong upside price momentum to boot.
$ETH at its lowpoint against $BTC?
Source: TradingView
The ETH/BTC pair has possibly been the biggest cause for concern for Ethereum bulls. A long descending channel has led the $ETH price lower against $BTC since early August of 2022. $ETH even broke an ascending trend line, in place since September 2019, and just recently, threatened to fall through the bottom of the descending channel.
However, this looks to have been avoided, and with $ETH currently sitting on strong horizontal support, a bounce might be expected from here. The indicators on the Stochastic RSI look as though they may be shaping to cross up through the 25.00 level and signal strong pro-$ETH price momentum.
Can SOL/ETH break back into the range, or will it be a confirmation and then higher for $SOL?
Source: TradingView
Against its major layer 1 competitor Solana (SOL/ETH), it can be seen that $ETH bulls are trying to reverse the $SOL breakout from the big range that this pair have followed since the beginning of the year. In $ETH’s favour the weekly Stochastic RSI has crossed back down. It just remains to be seen whether this will continue, or whether the $SOL price might come back to reconfirm the breakout, and then head higher.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
