The crypto market showed no concrete trend this week. Nevertheless, there is a divergence between the movements of ether (ETH) and that of bitcoin (BTC).
Divergence between ether (ETH) and bitcoin (BTC)
On the weekly scale, the queen of cryptos seems more bearish than the eternal second. Indeed, during the collapse of FTX, bitcoin suffered more losses than ether (ETH). But since the start of the year, BTC has recovered more value than ETH. Indeed, the price of BTC is already very close to the August high. On the other hand, ETH remains on a hurdle of its own: the Merge. With this divergence, it looks like a correction is brewing in the crypto market, and ether (ETH) will be no exception.
On the daily scale, the second crypto by market capitalization remains stuck around the Merge hurdle. But it remains in the green for this month. However, next month could be a corrective month. In this case, we maintain our entry point from the February 22 analysis. The target being the same at $1300. If the price however breaks through the psychological level of $2000, it will likely be the start of a bull run on Ether (ETH).
A short-term symmetric triangle
While waiting for the position at $1730, we will try to see scalping opportunities. Indeed, no three-star event is scheduled for today on the economic calendar. Thus, we envisage a calm day to end the week. However, the presence of this symmetrical triangle on ether (ETH) could present us with an opportunity to scalp.
On the H1 scale, we see that the price has been following a downtrend line this week, since Tuesday’s high. Then, a slanting support formed from Tuesday’s low. These two lines form a symmetrical triangle on the chart. Since we are considering the return of ether (ETH) towards $1730, we therefore remain bullish for today. The Merge level remains interesting to enter a long position. The target being the area above the resistance at $1719.
Entry point: $1636
Stop: $1600
Goal: $1730
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