Gold Rises from a Fall
In our May 25 comparative price analysis of Bitcoin and gold, we noted that Gold ($/OZ) had broken out above a descending resistance line on May 23.
Ther resistance line emerged on May 20. It represented a gradual three-day decline following the more rapid drop seen earlier in the day.
After the breakout, the price bounced back highs in the uppers $1280s on May 24—near the levels seen before the rapid drop four days earlier. Subsequently, the price of gold dropped toward $1280 but rebounded before reaching that threshold.
At the time of writing on May 25, gold was trading at levels slightly lower than the highs seen one day previously.
Ethereum In a Channel
The price of Ethereum reached an hourly high of $261.77 on May 17 and generated a horizontal resistance line. Later in the day, a support line was also generated after the price dropped to a low of $227.20.
Since then, it has been trading within the horizontal channel outlined below:
Highs on May 20 and 21 generated a double top pattern. The price then dropped and reached the support line on May 23.
Ethereum rebounded and is currently moving toward the resistance. If the resistance line is reached, a triple top pattern might be created. This could initiate a downward trend that might lead to a breakdown below the support line.
SummaryThe price of Ethereum (candlesticks) and the price of Gold (line) are compared at one-hour intervals from May 20 to May 25 in the graph below: Ethereum has been experiencing significant volatility between May 20 and 25. It has been bouncing between the support and resistance lines. During this period, the price dropped by over 2%. Bitcoin also saw decreases during this period, but they were less significant. Gold, on the other hand, experienced much less volatility and saw growth during the same period. Between May 20 and 25, gold increased by over 0.5% In short, while gold experienced overall gains, Ethereum experienced more significant losses. Do you think that gold will be able to continue outperforming Ethereum? Let us know in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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.