We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
  • The $USD faces selling pressure against the Malaysian Ringgit and Philippine Peso. More losses may be in store in $USDMYR as $USDPHP descends through rising support from 2013. Get your market update from @ddubrovskyFX here: https://t.co/t3kmFpmg1w https://t.co/miBrgxmtkA
ETH vs BTC - Ether and Bitcoin Spread; De-Risking Crypto Trading?

ETH vs BTC - Ether and Bitcoin Spread; De-Risking Crypto Trading?

2018-05-22 15:30:00
Nick Cawley, Analyst
Share:

Cryptocurrency Spread Trade

- Trading Ether and Bitcoin against each helps remove general cryptocurrency market risk.

- Ether continues to out-perform Bitcoin.

If you are new to trading cryptocurrencies, or are just looking to refresh your trading knowledge, please see the DailyFX ‘Guide to Day Trading Bitcoin and other Cryptocurrencies’.

Trading the ETH/BTC Spread

Cryptocurrency trading is notoriously volatile with price swings of 20%+ seen in times of heavy turbulence. And in most of these cases, all cryptocurrencies move in the same direction, either sharply up or down, leaving traders exposed to market risk. And while cryptocurrencies are different with specific news and announcements also major drivers for market moves, general market sentiment continues to be the main theme of the cryptocurrency space.

One way to reduce market sentiment risk is by trading two cryptocurrencies against each other – a spread trade. A look at the latest Ether (ETH)/Bitcoin (BTC) spread shows that ETH has been outperforming BTC over the last 6 weeks, moving up from around 0.0580 to a current level of 0.0832, a rise of just over 43%. The basis behind this move is that traders believe that ETH has more value than BTC as a company or network, while market positioning and sentiment will also have played a part in the move.

A comprehensive guide to Bitcoin (BTC)

A comprehensive guide to Ether (ETH)

A look at the latest IG Client Sentiment Report shows that customers are 73.6% net-long of Bitcoin and 91.0% net-long of Ether. While this is a contrarian indicator – bearish for both – daily and weekly changes in net-longs and net-shorts impact on overall retail sentiment.

The strong uptrend remains in place, while on this four-hour chart the price remains above the 200-day moving average, a bullish sign. At the bottom of the chart the RSI indicator is around 46, just above the four-recent oversold reversal signals at 39.

ETH vs BTC Price Spread Four Hour Chart (April 6 – May 22, 2018)

ETH vs BTC - Ether and Bitcoin Spread; De-Risking Crypto Trading?

--- Written by Nick Cawley, Analyst.

You can contact the author at Nicholas.cawley@ig.com or via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.