Ethereum vs. Bitcoin: Why Is ETH Stuck While BTC Soars?

Ethereum, the number two cryptocurrency, has stalled in the recent market boom, but technical indicators hint at a possible breakout.

Golden people reaching up to bitcoins.
Created by Kornelija Poderskytė from DailyCoin
  • Ethereum’s price has flatlined for two weeks despite positive crypto market trends.
  • Bullish signals have emerged, with the Fear and Greed Index pointing to rising demand and trading volume jumping.
  • DEX volume has plummeted, causing analysts to worry about a limited buying range.

Ethereum (ETH), the second-largest cryptocurrency, has been a stagnant spectator in the recent crypto rally. Stuck between $3,841 and $3,703 for two weeks, even the long-awaited Ethereum ETF approval failed to spark a move. Is Ethereum destined for irrelevance, or is a breakout brewing just beneath the surface?

Is Ethereum Ready to Surge?

While other altcoins bask in the sun of investor enthusiasm, Ethereum remains curiously flat. But beneath the surface, technical indicators hint at a possible surge. The Fear and Greed Index, a sentiment barometer, leans bullish, signaling rising demand for ETH. Trading volume has also jumped 10% to a healthy $14.6 billion, adding fuel to the potential price increase.

Sponsored

A recent price rise mirrored Bitcoin’s, with Ethereum reaching $3,813.39 on a 1.06% daily gain. This aligns with technicals like moving averages, which currently position Ethereum in a “buy zone,” suggesting increased investor interest. 

The Relative Strength Index (RSI) sits comfortably at 63.1, indicating a balance between buying and selling pressure. If the RSI stays put, Ethereum’s price is likely to hold its ground. If the uptrend continues, the price could test $3,946.

But there’s a potential fly in the ointment. Decentralized exchange (DEX) volume, a measure of peer-to-peer trading activity, has sunk by a worrying $2 billion in a week, dropping from $3.34 billion to a mere $1.03 billion. This raises concerns about the overall demand for Ethereum.

Analyst Cites Key Levels to Watch

Crypto analyst SuperBro amplifies these concerns. His analysis of buying patterns reveals that 1.81 million addresses purchased 1.66 million ETH within a narrow $3,820-$3,700 range. Continued buying within this limited price band could stall any price increase. 

A decrease in buying pressure could trigger a drop, with potential support around $3,580 and $3,462. Additionally, technical indicators like MACD and momentum suggest some potential selling pressure, hinting at some volatility before a significant upward move.

Sponsored

The next 24 hours will be crucial. Investors will be glued to market sentiment and RSI data to see which way the charts head. While DEX volume and selling pressure pose challenges, bullish factors like options trading and rising demand suggest a potential Ethereum price surge is not out of the question. Will Ethereum roar back to life, or will it remain stuck in neutral? Only time will tell.

On the Flipside

  • Even if bullish factors prevail, the narrow price range within which buying has been concentrated could limit the extent of any price surge.
  • The significant drop in DEX volume indicates a potential decline in peer-to-peer activity and enthusiasm for Ethereum on decentralized platforms.
  • While RSI suggests a balance, MACD and momentum hint at selling pressure. This inconsistency in technical indicators makes price prediction more challenging.

Why This Matters

Ethereum’s current stagnation amidst a general crypto rally sparks questions about its future. While technical indicators hint at a possible breakout, concerns over declining DEX volume and limited buying range raise doubts. The next 24 hours could be pivotal, with investor sentiment and RSI data potentially dictating whether Ethereum joins the rally or falls behind.

Cryptocurrencies are on the rise! This article explores the possibility of Ethereum reaching $4,255 by June’s end:
Ether Eyes $4,000 in June as Technicals Signal Bullish Trend

Big news for Ethereum enthusiasts! This article discusses the recent filing by BlackRock to launch an Ethereum ETF:
BlackRock Files Updated ETH ETF Proposal: Here’s What’s New

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.