Ethereum coin costs are all able to steal the present

Ethereum Coin: This is why the ETH is likely to outperform BTC

Bitcoin is making headlines right now and has become the talk of the town. A milestone occurred on December 10th, and this cryptocurrency gained legitimacy when it was traded on the Chicago Board Options Exchange (CBOE). All of this buzz overshadows the fact that Ethereum coinThe second largest cryptocurrency by market capitalization should take a significant step towards higher prices. The kicker is that I believe that ETH coin prices will significantly outperform Bitcoin in the future and will effectively steal the show.

All of my views on cryptocurrencies have been created using technical analysis, and this time it is no different. Technical analysis is a method of investment analysis that involves analyzing the asset’s price chart to determine where the price is going next. This method has served me very well, especially in the field of cryptocurrency.

The completed pattern

The following price chart for Ethereum coins shows the reason I believe Ethereum will be headed for higher prices.

Chart courtesy of TradingView.com

The technical pattern highlighted on this Ethereum price chart is a triangle. Triangle patterns occur when the price of the asset is characterized by a sequence that includes lower highs and higher lows. The best way to identify this pattern is by looking at two converging trend lines created by connecting the series of lower highs and higher lows. These trend lines define this pattern and act as respective levels of price support and price resistance.

When price breaks above resistance or falls below support, it indicates that the triangle pattern is complete and suggests that the price of the asset will go in that direction.

On November 23, the triangle pattern was completed when the ETH coin price left this pattern by crossing the resistance, suggesting that higher prices are likely to prevail.

If I pull back and deal with this ETH coin price chart for the longer term, it shows that the triangle pattern is actually a consolidation wave that acts as the midpoint within a larger uptrend.

The bigger uptrend

The following Ethereum price chart shows the importance of the triangle consolidation wave.

Chart courtesy of TradingView.com

This ETH coin price chart shows an upward trend that is constructive in nature.

Constructive price promotions contain two predominant waves: an impulse wave and a consolidation wave.

The impulse wave defines the period of time in an uptrend in which the asset moves consistently in the direction of higher prices. In a bullish trend, profits are captured here.

The consolidation wave defines the period in an uptrend in which the asset price stops rising and instead the gains from the previous impulse wave are digested by corrective price measures. Corrective pricing action will dissolve any overbought conditions that were created to create the necessary environment in which a new advancing impulse wave can develop.

The triangle pattern doubles as a consolidation wave, and the November 23rd eruption completed this wave. This suggests that a new wave of impulses is currently in development.

Ethereum price forecast

This wave structure can be used to create a potential price target as the consolidation wave acts as the center of the trend. With this assumption, the previous pulse wave can be used to project where the prices are going.

also read: Stick to Ethereum for the long term

The logarithmic approach seems to be best applicable as cryptocurrencies tend to perform parabolic movements. Applying the logarithmic approach to the ETH price chart gives a price target of $ 9,000. I know such a target seems crazy to understand, but to keep things in view, ETH prices moved from $ 8.20 to $ 412.21 earlier this year, meaning a move from $ 440, $ 00 to $ 9,000 isn’t that far off.

After figuring out why I believe Ethereum will go higher, I will outline why I believe Ethereum coin prices will surpass Bitcoin prices.

Bitcoin versus Ethereum

This price chart shows the performance of Ethereum versus Bitcoin.

Chart courtesy of TradingView.com

The pattern highlighted on the price chart is an ascending channel and is created using two upward sloping parallel trend lines. These trend lines act as a measure of price support and price resistance.

The slope of the pattern suggests that the Ethereum coin is slowly catching up with Bitcoin over time.

For some reason, December Ethereum coin prices bottomed out against Bitcoin prices for the past two years. This event can be seen on the price chart as in this case the support described by the ascending channel has been tested for the past two years. Every time this event has occurred, the price of Ethereum coins has moved significantly towards higher prices, where it has outperformed Bitcoin prices.

If this correlation continues, it suggests that Ethereum coin prices will take a significant step up. The essential step is supported by the two previous price charts that I have provided. I have to believe that based on these signs, it is very likely that ETH prices will take an epic move towards higher prices that will outperform the move in Bitcoin in the future.

Analyst take:

I am very optimistic about the outlook for future Ethereum coin prices as I have reason to believe that ETH coin prices are about to take an epic move towards higher prices. This bullish view is based on what is indicated on the Ethereum price chart and as long as the price movement remains bullish I will continue to support this view.

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