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Ethereum Breaks Out, Bitcoin Could Follow Its Lead

2 mins
Updated by Gerelyn Terzo
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In Brief

  • Bitcoin is trading inside a long-term symmetrical triangle.
  • Ethereum has broken out from a descending resistance line and is attempting to move above the $215 resistance area.
  • If it follows Ethereum's lead, Bitcoin could break out from its current pattern and move towards $10,000.
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After breaking out from the $9,200 resistance area, the BTC price is moving towards its descending resistance line at $9,700. While the price movement is not identical, Ethereum has just broken out from a similar descending resistance line.
Since the lows of April 30, the Bitcoin price has either been trading inside a symmetrical or descending triangle. Today, the price increased above the middle of this pattern, breaking out above the $9,250 resistance area and the 200-hour moving average (MA). The breakout transpired with significant volume, increasing its legitimacy. Furthermore, the RSI broke out above a resistance line that had previously been in place for the past two weeks. It looks as if the price will head towards the resistance line of the triangle, which is currently at $9,700. It is not yet clear whether the price will break out or not. If successful in doing so, BTC would be expected to increase at least until the top of the triangle at $10,000, and possibly towards the previous resistance levels at $10,500.
Bitcoin Triangle
Bitcoin Chart By Tradingview

Ethereum

While the breakout from this resistance line has not happened yet for Bitcoin, cryptocurrency trader @Inmortalcrypto stated that it has already occurred for Ethereum:
Ethereum
Source: Twitter
Indeed, Ethereum has broken out from a symmetrical triangle that had been in place since April 30, the same as for BTC. However, the price is still trading inside a significant resistance area at $215, which is both a previous resistance level that has been validated thrice until now, and the 0.618 Fib level of the entire decrease beginning in February. If the price is successful in reclaiming this area, it would be likely to move towards $250.
ETH Resistance
Ethereum Chart By Tradingview
Since the March 13 low, both Ethereum and Bitcoin have been generally moving in the same direction, with two main divergences until now, in which ETH initially creates a higher high while Bitcoin does the opposite, and then the roles are reversed. If ETH breaks out above the aforementioned resistance area, it would be expected to increase at a faster rate than Bitcoin, creating another higher high, while Bitcoin would still be creating a lower high.
Bitcoin And Ethereum
Bitcoin And Ethereum Chart By Tradingview
To summarize, Ethereum has broken out from a descending resistance line and is attempting to move above a crucial resistance level. If Bitcoin acts in a similar way, it would break out from its current pattern and move towards $10,000.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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