- Both BTC and ETH have a bearish outlook based on technical analysis
- On-chain metrics recently showed more consistent accumulation for ETH than BTC
Bitcoin [BTC] and ether [ETH] both were trading below the key resistance levels of $60k and $2.6k respectively at the time of writing. Their market structures on the three-day and weekly time frames were also bearish.
The rapid sell-off in early August caused panic, but also gave market participants the conviction to purchase these top crypto assets. AMBCrypto examined these trends to understand market sentiment. And we found that Ethereum had an advantage.
Price action and technical indicators showed the seller’s supremacy
Source: BTC/USDT on TradingView
On the chart, the orange marked the bearish structure break, while the significant lower high at $72k remained unbeaten. Combined with the bearish RSI on the D3 chart and the downtrend of the OBV, it is likely that the sellers will force BTC below $56.1k again.
The first sign of recovery would be a sustained rise above $60,000. However, at the time of writing, there was no demand to bring about this turnaround.
Source: ETH/USDT on TradingView
The technical outlook for ETH is even more bearish. The fair value was around $2.8k, with an overhead of $2.9k at the Fibonacci level. This spelled huge trouble for Ethereum bulls.
The RSI and OBV indicated that bearish pressure can be expected. This could pave the way for a move towards $2.2k.
Netflows showed accumulation trends that were more consistent for Ethereum
The increase in stablecoin reserves covered in an earlier report highlighted the rising purchasing power in the crypto market. Just after the massive price drop on August 5, BTC net flows were negative.
This showed that coins were leaving the exchange – a sign of accumulation.
Ethereum has also recorded an accumulation since late July. The downward trend of the netflow metric was more stable than that of BTC.
This is a sign that Ethereum’s accumulation has been rapid, while BTC holders have been more hesitant. Unfortunately, it is not a definitive guarantee that Ethereum has been more bullish.
Finally, the Coinbase Premium for Bitcoin and Ethereum were both positive. This underlined the increased demand from US investors.
Yet the premium for Bitcoin has fallen over the past two weeks.
Meanwhile, Ethereum Coinbase Premium was slightly more positive, another sign that demand for ETH has outpaced BTC over the past ten days.
Read Bitcoin’s [BTC] Price forecast 2024-25
Overall, the statistics showed that Ethereum has an advantage over Bitcoin. The price action advantage was that of BTC, although both assets were bearish on the selected time frames.
A move past the key resistances at USD 60,000 and USD 2.6,000 could boost confidence in the crypto markets.