A massive crypto market selloff set back the prices of Bitcoin and Ethereum by more than 50%. Ether fell a lot harder, wiping out more gains, but has since recovered a lot better.
Technical indicators across the USD pairs of both cryptocurrencies are far more bullish for Ethereum, and it could be a sign of significant overperformance against Bitcoin – but it might not be enough for a “flippening.”
Ethereum At Its Most Bullish Won’t Flippen Bitcoin, Technicals Suggest
In an industry centered around coins, there’s a lot of flipping going on. Each altcoin is a coin flip whether or not it’ll be something some day, and traders are regularly flipping bullish or bearish depending on the price action and sentiment.
Cryptocurrencies are always “flipping” one another by rank in the top list of cryptocurrencies by market cap, but all eyes are on the two behemoths and if a “flippening” will ever occur.
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The best attempt of the top altcoin overtaking the reigning top cryptocurrency could soon be coming – according to several technical indicators and a direct comparison between ETHUSD and ETHBTC.
ETH is above the middle-BB while BTC is well below it | Source: BTCUSD on TradingView.com
The first of the two assets side by side suggests that the Bitcoin trend has begun to turn down, while Ethereum’s is still pointed upward. ETHUSD is also now above the middle-band – a simple moving average – on weekly timeframes while BTCUSD is well below it.
During the last bull run, Bitcoin price never once closed a weekly below it.
The Ichimoku shows that ETH is a lot more bullish than BTC | Source: ETHUSD on TradingView.com
Next, comparing the two assets using the Ichimoku indicator tells a similar story. In the BTCUSD weekly chart, the Tenken-sen and Kijun-sen have crossed bearish (red and blue lines) while ETHUSD is still very bullish.
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Price action on both cryptocurrencies are below both spans, which isn’t exactly great conditions for now.
The target of the bottoming pattern is 0.4 | Source: ETHBTC on TradingView.com
Where things become a lot more clear, is on the ETHBTC trading pair. Ditching USD and putting ETH directly against BTC shows that Ethereum is holding above a key resistance level turned support. Even a rejection would take the pair back to an ironclad support level that didn’t break after three whole years.
If an inverse head and shoulders pattern confirms, the target would be the top of the Ichimoku cloud, which is at around 0.4 on the ratio. Each Ethereum would cost around half of each Bitcoin – slightly less – but fall widely short of ever flippening in the reigning king of crypto.
Featured image from iStockPhoto, Charts from TradingView.com