Ethereum Shows Strength Compared to Bitcoin, Gold Trails Higher: The Crypto’s Bull, Bear Case

Ethereum ETH/USD emerged over 3% higher Tuesday, showing strength relative to Bitcoin BTC/USDwhich was only 1% higher.

The crypto sector was strong compared to the general market, with the S&P 500 looking to close down 0.8%. In comparison, spot gold rose almost 2%, indicating that the crypto sector may follow the commodity higher.

Ethereum’s surge saw the crypto break out of a sideways trading pattern that had held it down since March 18. The measure also confirmed that Ethereum is trading in an uptrend pattern.

An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate that the bulls are in control, while the intermittent higher lows indicate periods of consolidation.

Traders can use moving averages to identify an uptrend, with rising moving averages for lower timeframes (such as eight-day or 21-day exponential moving averages) indicating that the stock is in a steep short-term uptrend.

Rising long-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

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The Ethereum Chart: Ethereum began trading in an uptrend on March 28 and has since made a higher low and two higher highs. The higher low was formed on Monday at $1,763 and the most confirmed recent higher high was printed at the $1,847 mark on Friday.

• On Tuesday, Ethereum traded above the recent high, confirming that the uptrend is intact. If Ethereum closes the trading day near its intraday high, the crypto will hit a bullish Marubozu candlestick, which could indicate higher prices in the cards for Wednesday.
• If Ethereum closes the trading session with a significant upper wick, the crypto will print a star candlestick, which could indicate that the next local top has taken place, and Ethereum will return to at least another higher low on Wednesday.
• For bulls swing trading Ethereum, the eight-day exponential moving average could be a good level to stop because the indicator has been leading the crypto higher since March 13, indicating that the eight-day is a strong level of support.
• Ethereum has resistance above at $1,957 and $2,000 and support below at $1,846 and $1,717.

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