Betting on Ethereum: Could ETH outperform Bitcoin shortly?

TLDR

• Ethereum's key resistance at $1,853 could be the gateway to higher levels, with a potential target of $2,120.
• Despite an overbought RSI, Ethereum's bullish structure suggests the potential for further upside.
• Ethereum's support at $1,745 provides a strong foundation for a potential move higher.
• With positive indicators and potential for ETH/BTC rebound, Ethereum could see gains in the coming weeks.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

The $1,23 to $1,853 area remains the key resistance for ETH. If ETH can break out of that level, it’s possible ETH can then move to $1,933, which is the last resistance before a clean move to $2,120. 

So far, the $1,745 horizontal level (prior resistance) has acted as good support, which is positive and should help fuel a move higher. The key is convincingly breaking above $1,853.

ETH 1D

RSI and funding rates

The RSI on the daily is overbought and is putting in a bearish divergence as we speak. In bull markets, RSI’s are always overbought essentially. We’re still unsure if this is a full-blown bull market, but the structure is certainly bullish. This is an RSI indicator we should be somewhat aware of, though. 

“Regarding funding rates, ETH’s is currently very positive, but there isn’t a lot of open interest, which suggests not much leverage is being taken out. This is a relatively healthy position in terms of Funding for ETH”.

This was Friday’s update, and it remains the same today. We would see this as positive for ETH to potentially go higher. When we see open interest go up meaningfully, that’s the time to begin being somewhat more cautious, but for now, we may be good to go. 

Cryptonary’s take

ETH has underperformed BTC, but BTC has held at a very good level. With ETH/BTC looking like it can bounce in the near term, this may give ETH some room to outperform BTC. 

If BTC can hold or break out of $34,500 and go higher, we think ETH could be at $2,000 within the coming week or two. 

ETH/BTC Weekly

Action

• ETH’s performance has been weak, but following a weekend of positive price action, we feel ETH can go more meaningfully higher in the short and medium term. 
• If you’re under-exposed to ETH, we feel now would be a good time to get in or at least begin to have a position.