Bitcoin vs Ethereum price prediction: Leadership change at a critical moment for the Crypto market


  • Ethereum has lost its edge against Bitcoin, which has the chance now to lead the Crypto market
  • Important levels being lost for the main Cryptocurrencies, pessimism looms and institutional investores await to get into the market: new markets, old stories

BTC/USD 4H chart

BTC/USD

Bitcoin has drilled the Diamond formation base during the early European trading, which has severely damaged its short-term outlook. Actually, BTC/USD seems to be looking only the $7870 support, with the current falls actually limited, taking into account the big ranges Bitcoin usually involves. But the current technical breakdown is demolishing and might bring, if not a big technical swing in favor of bears, at least some difficult weeks for the bulls.

Below the current price, Bitcoin has some freedom to fall and we need to dip towards $7400 to find the first meaningful support. Next targets would be at $7100 and $6850. If any of these supports are reached, we should re-think the current scenario, draw the chart again and prepare for some strong bearish weeks.

On the upside, right now the only meaningful level is at $8050, which would take the BTC/USD to the bullish side. It's not the most likely scenario now, given how damaged is the technical outlook, but the change of leadership that we've seen between Ethereum and Bitcoin, with BTC taking back the edge, might be helpful for the bulls.

MACD in the 4-hour chart is crossed to the downside and now at the bearish territory of the indicator. In this timeframe, we see now two MACD divergences and a probable third on the way. As we know, a divergence doesn't mean an upcoming swing, but it expresses an usual behaviour in price.

Directional Movement Index in the same chart is showing sellers in a very strong position, with buyers in clear retreat but still in superior levels to those seen last May 12th. It's important to mention the retreat of the sellers in this last bearish leg.

ETH/BTC 4H chart

ETH/BTC

This is the chart of the day. Ethereum is losing strength in its cross with Bitcoin, with BTC regaining the leading position in the Crypto market, which in the past meant bull-market for Cryptos. A rotation of accounts back to Bitcoin crosses looks likely, at least until the current cross reaches the base of the triangle formation that currently contains the price. This key level is at 0.07BTC. At such level, we might be able to re-analyze the cross and re-evaluate if the mentioned rotation might continue.

Below the current level, supports for ETH/BTC are at 0.0765BTC, 0.0737BTC and 0.0685BTC, if the fall gets really vertical.

Above there, and as a necessary level to recover control of the cross, Ethereum needs to take its Bitcoin-measured value to 0.0836BTC first, followed by 0.09BTC and 0.1BTC as the ideal target. As we can see, this is a difficult scenario.

MACD in the 4-hour chart is now crossed to the downside, but still at the superior area of the indicator. There is still room before getting into negative territory, but the bullish steam that allowed Ethereum to lead has been lost.

Directional Movement Index in the same chart is showing sellers outweighing buyers by a small margin, something we haven't seen since mid-April. ADX is still setting the trend, but very close the level that indicates that trend strength has been lost.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP