Ethereum (ETH) Price Finally Outperforms Bitcoin — Eyes on Key Resistance at $2,900

Key Takeaways

• Ethereum (ETH) outperformed Bitcoin (BTC) last week.
• Ethereum trades below the $2,900 resistance area.
• Can Ethereum increase toward this resistance and break out?

It is no secret that Ethereum has been one of the most disappointing performers in the current bull run, trailing Bitcoin and other Layer-1s. However, Ethereum outperformed Bitcoin by more than 3% last week.

Let’s analyze the Ethereum price action and see if this is just a temporary occurrence or if it will be a long-lasting trend.

Ethereum Bounces vs Bitcoin

The daily time frame Ethereum to Bitcoin chart shows a decline under a descending resistance trend line since August. The decline led to a low of ₿0.038 on Sept. 19. Ethereum moved above the trend line on Oct. 20, after creating a triple bottom pattern.

If the increase continues, the next resistance will be just above ₿0.0041.

The daily Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) imply the upward movement will continue. Both have generated bullish divergences (green) and are moving upward, signs of a positive trend.

The weekly time frame ETH/BTC chart has been bearish since Dec. 2021. The ETH price created a lower high in September and has fallen at an accelerated rate since then.

The decline is contained inside a descending parallel channel and ETH trades very close to the trend line. While there is a growing bullish divergence in the weekly RSI, it has not led to anything notable yet.

The channel’s resistance trend line is at ₿0.052, coinciding with a long-term horizontal resistance area.

So, even though the daily chart shows a bounce, the weekly one reveals it is insignificant compared to the preceding downward trend.

Ethereum Trend Reversal?

The weekly time frame Ethereum chart shows that the price bounced at a long-term horizontal support level of $2,400. After the third bounce (white icons), ETH created a weekly bullish candlestick with a magnitude of 11%. This is the largest bullish candlestick since a 25% one in May.

The MACD is close to giving a very interesting bullish signal since it is very close to making a bullish cross (black circle). The previous time such a cross occurred was in October 2023, triggering a 146% price increase.

The daily chart supports the bullish Ethereum price prediction from the weekly one.

Ethereum’s price action shows a breakout from a descending resistance trend line existing since August. The breakout happened after three previous unsuccessful tries.

Just before the breakout, the daily RSI increased above 50 and the MACD moved above 0, both signs that the trend is turning bullish.

The main resistance area for Ethereum is at $2,900. A breakout above it can greatly accelerate the upward movement toward $3,500.

Key Resistance Ahead

While the Ethereum price outperformed Bitcoin last week, it is still far away from the level required to confirm a bullish trend reversal.

On the other hand, the Ethereum to USD pair is more bullish.

If the Ethereum price breaks out from the $2,900 resistance area, it can accelerate its rate of increase toward the next resistance at $3,500.