Ethereum is showing its first true signs of its potential to outperform Bitcoin in the months ahead after a strong rally that has resulted in the first 8/34 EMA crossover seen on the 4 Day chart since May 2018.
If you are unfamiliar with why this is a bullish signal, I’d suggest reading my crash course on Moving Averages. In short, when short term averages are above longer term averages, an instrument is said to be bullish.
The higher the timeframe, the stronger the signal, this particular signal is on the 4 Day chart. The fact that such a crossover hasn’t happened in such a long period suggests Ethereum could be gaining some serious steam over Bitcoin.
Ethereum has seen a recent surge in the past 24 hours, moving from around $130 to $175. Looking at this chart its clear the recent rally is an attempt by Ethereum bulls to keep the 8 EMA above the 34.
If buyers can keep the ETH/BTC ratio above 0.0222, its not unreasonable to expect a move to the 200EMA at 0.038. Only time will tell, and with a higher timeframe chart such as the 4D, we have plenty.