Ethereum has outperformed Bitcoin recently by over 3%, recovering from a period of underperformance. The cryptocurrency broke above a descending trend line, showing bullish signals, with a critical resistance level at $2,900. If surpassed, this could propel the price towards $3,500, while the broader market dynamics remain important to consider.

Ethereum (ETH) has recently outperformed Bitcoin (BTC) by more than 3%, following a significant period of underperformance during the current bull run. Analysts are now closely examining Ethereum’s price action to determine whether this momentum is sustainable or merely temporary. On a daily chart comparison, Ethereum has shown signs of recovery after a prolonged decline under a descending resistance trend line, which lasted since August. The price reached a critical low of ₿0.038 on September 19, but experienced a breakout above the trend line on October 20, supported by a triple bottom pattern. Should this upward trajectory persist, the next resistance level to monitor is just above ₿0.0041. The indicators, including the daily Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), signal that the bullish momentum is likely to continue, reflected in the formation of bullish divergences. In contrast, the weekly ETH/BTC chart remains bearish, having trended downward since December 2021. While a lower high was established in September, Ethereum’s price has been restricted within a descending parallel channel, nearing the upper resistance line. Although growing bullish divergences in the weekly RSI may provide hope, they have yet to lead to significant price movements. Furthermore, the Ethereum weekly chart demonstrates price recovery from a long-term support level set at $2,400. This led to a notable weekly bullish candlestick formation, marking an 11% increase, the strongest since a 25% rise in May. The MACD is approaching a critical bullish cross, which previously prompted a substantial 146% price increase upon its last occurrence in October 2023. Despite Ethereum’s recent outperformance against Bitcoin, the cryptocurrency still faces challenges in confirming a trend reversal. The primary resistance level for Ethereum remains at $2,900, with a potential breakout from this zone likely to accelerate gains towards $3,500. Conversely, the Ethereum to USD pair exhibits more bullish signals overall, emphasizing the potential for further increases if the $2,900 resistance is breached.

Ethereum, as a leading smart contract platform in the cryptocurrency ecosystem, has witnessed fluctuating performance relative to Bitcoin, the market’s predominant digital asset. Historically, Ethereum has been overshadowed by Bitcoin, particularly during bullish market phases, prompting scrutiny from analysts regarding its capacity to sustain upward momentum. Recent price action reveals that while Ethereum has underperformed in previous months, it has shown signs of revitalization, sparking discussions on its potential to reclaim dominance in the crypto space amid shifting market conditions.

In summary, Ethereum’s recent price performance, which includes a 3% outperformance over Bitcoin and significant upward movement from key support levels, suggests a potential bullish trend. However, its ability to confirm a long-term trend reversal hinges on overcoming established resistance at $2,900. Should it succeed, the cryptocurrency may find itself on a trajectory towards $3,500. As market dynamics continue to evolve, stakeholders should remain vigilant and consider both technical indicators and broader market trends in their analyses.

Original Source: www.ccn.com

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