Between May 20 and 25, Ethereum has been bouncing between the support and resistance lines of a horizontal channel. Similarly, a short-term horizontal channel also formed for silver during the period.
However, silver broke out of this channel on May 23 while Ethereum is still trapped within its channel. In this analysis, we examine price fluctuations and trends for both assets. Then we compare their respective performances.
Silver’s Short-Term Channel
On May 25, we compared the price fluctuations of Bitcoin (BTC) against silver. Therein, we noted that Bitcoin had declined in value while silver had seen slight gains.
We traced a horizontal channel for silver between May 20 and 23. Silver ($/OZ) then broke out of that channel to reach a high of $14.64 on May 24.
Price subsequently fell. At the time of writing, the price had neared the $14.50 threshold and rebounded. It appears to be currently bouncing between $14.50 and $14.0.
A horizontal channel can also be traced for Ethereum; however, unlike silver, it is occurring over a longer period.
In our comparative analysis between Ethereum and gold, we noted that the resistance and support lines of the channel emerged on May 17.
At the time of writing, the price of Ethereum appeared to be moving toward the resistance line of the channel:
Thus, there is another dissimilarity between Ethereum and silver: where silver broke out of its trading pattern, Ethereum is still trading within the horizontal channel.
It is possible that upon reaching the resistance line, a triple top pattern will form. This could lead to rapid price drops and a possible breakdown.
The price of Ethereum (candlesticks) and the price of Silver (purple line) are compared at one-hour intervals from May 20 to May 25 in the graph below:
On May 20, Ethereum decreased rapidly. It bounced back on May 21 but experienced rapid drops between May 22 and 23. Since then, the price has been increasing. However, Ethereum still ended the period with a loss of over 2%.
The fluctuations experienced by silver during this period were much less significant. It ended the period with growth slightly under 0.7%.
In short, Ethereum saw losses while silver saw gains. Furthermore, Etheruem’s decline was more significant than silver’s growth.
Which of the two assets do you believe will increase the most during next week? 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.