Ethereum has taken the lead and has outperformed most of the major cryptocurrencies as the bulls managed to confirm a daily uptrend. Ethereum is currently trading at $142.85 after breaking above several daily resistances.
The bulls managed to break above both daily EMAs back on January 3 amid US-Iran tensions. and has then managed to set a bull flag and see continuation today in big fashion as the digital asset surged 8.4% to the upside.
A daily uptrend has been confirmed but the RSI (Relative Strenght Index) is not overextended. The trading volume for Ethereum hasn’t increased too much and the bulls are looking for a bull cross of the 12-period EMA with the 26-period EMA within the next few days.
Ethereum Breakout Against Bitcoin Signals ETH Bull Run?
The ETH/BTC trading pair is now favoring Ethereum as the digital asset has been able to set a daily uptrend against Bitcoin. Ethereum saw a huge crash on December 16 when it fell down to 0.017 from the high of $0.02.
Now, Ethereum has picked up a lot of momentum with a move that started on December 29 where Ethereum managed to surge 3.8% against Bitcoin and has seen good continuation today with a 2% surge breaking above the 26-period EMA.
Bitcoin’s dominance over the market has been really significant in 2019 but is starting to slow down for the past few weeks. Ethereum lost a lot of market dominance in 2019 from an 11.9% dominance in January 2019 to a current low of 7.5%, however, the recent move against Bitcoin might help Ethereum get back some of that market dominance.
Still Facing a Lot of Resistance in the Long Term
Although Ethereum has been able to set a daily uptrend before anyone else and has shifted the daily momentum in favor of the bulls, it is still facing a lot of resistance in the long term. The weekly chart is still in favor of the bears, however, a temporary bottom seems to have been set at $116.2 as the bulls managed to create 2 bullish reversal candlesticks during the last two weeks.
The monthly chart is somewhat neutral right now as the bulls can still set a higher low compared to $80.6 and then try to seek continuation although the most likely scenario will be an Equilibrium pattern.