Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Cryptocurrencies Trim Weekend Gains, Ethereum (ETH) Outperformance Continues

Cryptocurrencies Trim Weekend Gains, Ethereum (ETH) Outperformance Continues

Nick Cawley, Strategist

Bitcoin (BTC/USD), Ethereum (ETH/USD) Price, Chart, and Analysis

  • Bitcoin (BTC), Ethereum (ETH) giving back some of the weekend’s gains.
  • Ethereum/Bitcoin spread makes a break above trendline resistance.
Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Nick Cawley
Get Your Free Introduction To Cryptocurrency Trading
Get My Guide

The cryptocurrency market is giving back some of this weekend’s gains with market leader Bitcoin continuing to battle a zone of resistance between $42k and $43.5k. Cardano (ADA) jumped by nearly 50% over the weekend, before paring its gains, while a host of other alt-coins recorded double-digit jumps.

The daily BTC chart has been flashing an extremely overbought signal for a few days, so a pullback from its recent multi-week high is not unexpected. Support around $36,750, prior range resistance, should hold and allow BTC to retest overhead resistance once the latest consolidation phase is over.

Bitcoin Daily Price Chart (January – August 2, 2021)

Ethereum bulls enjoyed a strong weekend with the second-largest coin by market cap breaking above multi-week resistance around $2,470. In this weekend’s cryptocurrency article I noted how this level of resistance was under increasing pressure, especially with the ‘London’ upgrade expected this week. Ethereum is up in excess of 50% from its June 20 multi-week low so a small pullback again is to be expected. All three moving averages are now starting to point higher, adding further belief that the recent cluster of highs just under $3,000 may soon come under pressure.

Bitcoin (BTC) and Ethereum (ETH) Moving Apart, Binance Shutters Some European Derivative Markets

Ethereum Daily Price Chart (December 2020 – August 2, 2021)

The Ethereum/Bitcoin spread also broke higher this weekend, taking out a trend resistance line that has held the spread in check over the last few weeks. Support around 550 remains intact and a break and close above the July 7 swing high at 692 would negate the recent series of lower highs and allow the spread to push higher.

Ethereum/Bitcoin Daily Spread (February - August 2, 2021)

Chart via @IG.com

The Quiz
Discover what kind of forex trader you are
Start Quiz

What is your view on Bitcoin andEthereum – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES