Bitcoin

Bitcoin Price Leading Ethereum: Here’s Why ETH Could Rally To $260

Bitcoin Leading Ethereum

Bitcoin price rallied 20% recently and broke a bearish trend line on the daily chart. Ethereum is likely following BTC and it could also break a similar trend line and rally to $260.

In the past few days, there was a strong rise in the cryptocurrency market. Bitcoin soared close to 20% and tested the $9,500 resistance area. Similarly, Ethereum, ripple and litecoin gained bullish momentum above $200, $0.2000 and $45.00 respectively.

If we look at the daily chart of bitcoin, there was a steady rise from the $3,800 swing low. BTC broke many hurdles near $7,150 to move into an uptrend. Besides, there was a break above the 50% Fib retracement level of the last major decline from the $10,498 high to $3,800 low.

Bitcoin Price

Bitcoin Price Daily Chart

More importantly, there was a break above a major bearish trend line on the daily chart at $7,800. It opened the doors for a sharp upward move above $8,000 and $8,500.

BTC even climbed above the $9,000 level and the 76.4% Fib retracement level of the last major decline from the $10,498 high to $3,800 low. However, it struggled to continue above the $9,500 level and it is currently consolidating gains. In the short term, there could be a downside correction towards $8,000 before bitcoin starts another upward move.

Ethereum Could Follow Bitcoin’s Pattern

Looking at the daily chart of Ethereum, there is a similar pattern to bitcoin. ETH also started a steady rise from the $85 swing low. It surpassed the $120 and $150 resistance levels.

There was a break above the $200 resistance and the 50% Fib retracement level of the main slide from the $288 high to $85 low. However, Ether is yet to break a similar bearish trend line on the daily chart at $220.

Ethereum Price

Ethereum Price

If we consider the recent bitcoin rally above the trend line, ETH might also clear the trend line and rally 15%-20% in the coming days.

In the mentioned scenario, Ethereum is likely to hit the $250 and $260 resistance levels. On the downside, the previous hurdle near the $185 level is likely to act as a strong support zone for the bulls.

Featured image from unsplash

1 Comment

1 Comment

  1. Pingback: Bitcoin Price Testing Crucial Weekly Resistance: Can BTC Rally Above $10K?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay updated with latest news on finance, taxation reforms, stocks, currencies, trading, global markets and many more.

Are you finding it difficult to manage your personal finance? Know your best opportunities of investments and savings with expert analysis and latest updates.

Copyright © 2016 Finance Minutes

You agree to not make actual stock trades based on comments on the site, nor on any techniques presented nor discussed in this site or any other form of information presentation. Finance Minutes will not be held liable for any losses you in occur while trading. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. All information is for educational and informational use only. You agree to consult with a registered investment advisor, prior to making any trading decision of any kind.

To Top