Ethereum (ETH/USD), Bitcoin (BTC/USD), Dogecoin Talking Points:
- More shift in the crypto space as Ethereum has caught the attention of bulls.
- Both Bitcoin and Dogecoin remain on their back foot as ETH/USD has jumped to another fresh high.
- The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.
More shuffle in the crypto space but this time, Ethereum has outpaced both Bitcoin and Dogecoin over the past 24 hours.
Ethereum set another fresh all-time-high this morning, breaching above the 2600 level. This bullish move has entailed a test above a really big level at 2500, which was looked at last week just before coming into play. Not only is 2500 a major psychological level, it’s also very nearby the 161.8% retracement of Ethereum’s recent pullback move. This area helped to set the highs last week after which ETH/USD pulled back for a test of the 2k level. That support was tested on Sunday and Monday before bulls began to drive on Tuesday.
From a fundamental vantage point, there may be a case to be made for the interest in Ethereum versus Bitcoin or Doge. This week marked the first release of Major League Baseball NFTs from Topps. This puts more emphasis on the utility of Ethereum and the burgeoning market for Non-Fungible Tokens, which are often built on the ETH blockchain. And while NFTs are still in infancy, the fact that its based on ETH could give even more motive for bullish behavior in Ethereum.
ETH/USD Four-Hour Price Chart
Ethereum Next Resistance
Given that we’re seeing ETHUSD breaking new ground, there’s a dearth of historical relevance to draw from. In cases such as these, psychological levels can often come in as key resistance hurdles upon prints of fresh highs, similar to what we looked at last week around the 2500 marker. At this stage, topside targets can be only projections since we’re in uncharted territory, but the big price sitting ahead may be around 2750 followed by the 3k level.
Bitcoin Breach of Support, BTC on Back Foot
Last week Bitcoin was attempting to hold on to support around prior resistance, above the major psychological level at 60k. But last weekend saw a big move as BTC sliced below the bullish trendline and pushed down to a fresh near-term low.
Bitcoin (BTC/USD) Daily Price Chart
Buyers did push a quick bounce but prices found resistance on the underside of that prior trendline, and that led into a bit of congestion with a slight bearish bias.
At this point, prices have still respected that low set on Monday but the action hasn’t been very positive as we’ve seen continued lower-lows and lower-highs. Additionally, there’s now another case of prior trendline support showing up as resistance, taken from the swings of the Saturday and Tuesday lows (shown in Green below).
Bitcoin (BTC/USD) Four Hour Price Chart
Chart prepared by James Stanley; Bitcoin on Tradingview
Dogecoin Down to Support, Now We See What It’s Made Of
The crypto mania can be difficult to keep up with, things change every day. One of the more recent items has been the rise of the meme-coin known as Dogecoin.
I’m not going to try to make any fundamental arguments here. I will, however, highlight the price action in this market as its been a big year already and we’re just barely through Q1. Elon Musk has made a number of comments towards Doge and that seems to have driven some significant interest into this coin, which has led to a monster move so far in 2021 trade.
As looked at above in Ethereum, when there’s a dearth of historical evidence at a new or recent set of prices, technical analysts are going to need to draw on a different set of tools. Psychological levels can come in as key, and I believe that to be the case here in Doge as resistance has set-in around the .40 and .45 levels, while support has held from around the .2500 area.
Dogecoin (DOGEUSD) Four Hour Price Chart
— Written by James Stanley, Senior Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX