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Ethereum Attempting a Monthly Breakout and to Revert Underperformance Against Bitcoin

Summary: Ethereum is attempting a breakout on both the daily and monthly time frames and at the same time showing intentions to revert its underperformance against Bitcoin. Ethereum is a buy at the present level but preferably below 290 dollar and with a protective stop around 260 dollar.

Daily ETHUSD Breakout in Progress

At the time of posting Ethereum (ETHUSD) is attempting a breakout from the daily volatility envelop progressing more than 6% for the day.

Ethereum Daily Price Chart in US Dollar via Kraken

Monthly ETHUSD Breakout Requiring Confirmation

This move is synchronized with another tentative breakout through the monthly resistance line highlighted in our cryptocurrencies corrective scenario published on June 1st. The corrective move seems to have run its course and a bull trend is now taking shape.

Ethereum Monthly Price Chart in US Dollar via Kraken

Should Ethereum confirm its bullish intentions the move should extend higher at least towards the monthly moving average.

Ethereum Could Strengthen Against Bitcoin

The Ethereum to Bitcoin price ratio has formed a triple bottom on the 0.025 level and could yet revert higher, which would make Ethereum a better place to invest compared with Bitcoin in the months ahead.

Ethereum / Bitcoin Price Ratio via Kraken

This possibility will be realized in case of a monthly close above the 7-period moving average (presently 0.035), which will require Ethereum to significantly outperform Bitcoin in the last third of the month of June. The possibility for this trend reversal to fail needs not be neglected as it would be deleterious for Ethereum if the ratio were to move below 0.025.

Ethereum is a Buy below 290 Dollar

Under the developing bullish conditions ETHUSD is a buy at the present level (but preferably below 290). The position should be protected with a stop order around 260.

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