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Ether vs Bitcoin Price Spread: Bullish Ascending Triangle?

Ether vs Bitcoin Price Spread: Bullish Ascending Triangle?

Nick Cawley, Strategist

Ether and Bitcoin Spread Trade

- Ether has outperformed Bitcoin in the last week.

- Ascending triangle formation hints at further upside for the pair.

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’.

ETH vs BTC Price Spread Moving Higher

A look at the four-hour Ether/Bitcoin spread chart shows ETH recouping earlier losses and pushing higher against the market leader, BTC. The chart also shows an ascending triangle formation nearing completion which could see the spread move higher back towards the recent high made on May 20. While based on a short-term chart – normal ascending triangles are based on a longer-term timeframe – a break and close above the horizontal line could indicate further upside. The 20-dma is also trading above the 50-dma highlighting bullish short-term momentum while the RSI indicator is trading mid-market, indicating the market is neither oversold or overbought. The trade also offers traders the opportunity to partially remove crypto-space risk which should offer a layer of protection compared to a position against a fiat currency if market volatility picks-up.

A comprehensive guide to Bitcoin (BTC)

A comprehensive guide to Ether (ETH)

A look at the latest IG Client Sentiment Report shows that retail traders are 77.3% 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.

ETH Vs BTC Price Spread Four-Hour Chart (April 17 – June 5, 2018)

Ether vs Bitcoin Price Spread: Bullish Ascending Triangle?

We will be looking at the ETH/BTC spread at this Wednesday’s Cryptocurrency Webinar at 12:00pm.

--- 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.

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