Between June 1 and 8, the Ethereum price has been bouncing between the support and resistance lines of an ascending channel. Similarly, a short-term ascending channel also formed for the silver price during the period.
Furthermore, both are trading in the middle of the channel after making unsuccessful attempts at a breakout.
In this analysis, we examine price fluctuations and trends for both assets. We then compare their respective performances.
On May 25, we compared the price fluctuations of Ethereum (ETH) to silver. Therein, we noted that the Ethereum price had declined in value — while silver had seen slight gains.
We traced an ascending channel for silver between June 3 and 8. Silver ($/OZ) is currently trading in the middle of the channel after being rejected by the resistance line on June 7.
Both the resistance and support lines have been touched three times. After touching the resistance line for the third time, the silver price subsequently fell. At the time of writing, the price was trading near $15.
The highlighted part is the price of silver during the measuring period of June 1 – June 8.
Similarly, an ascending channel can also be traced for Ethereum. However, unlike silver, it is occurring over a shorter period.
The resistance and support lines of the channel emerged on June 5, with lows and highs of $233.30 and $247.50, respectively.
At the time of writing, the price of Ethereum appeared to be moving toward the support line of the channel after being rejected by the resistance line on June 7.
Thus, there is one similarity between the Ethereum price and silver price: both of them are trading in the middle of the channel after being rejected by the resistance line.
The highlighted part is the ETH price during the measuring period of June 1-8.
The price of Ethereum (candlesticks) and the silver price (purple line) are compared at one-hour intervals from Jun 1 to Jun 8 in the graph below:
On Jun 3, Ethereum began a rapid decrease. It achieved a total decrease of 12 percent on June 4 and 5. Afterward, a gradual increase ensued and the price created the ascending channel outlined in the above section. Even though it has been increasing, the measuring period ended with a loss of seven percent.
The fluctuations experienced by silver during this period were much less significant. It began to slowly increase on June 3, during the same time ETH began a rapid increase. It ended the period with growth of three percent.
In short, Ethereum saw losses while the silver price saw gains. Furthermore, Etheruem’s decline was 2.3 times 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.
Images courtesy of TradingView.