- Both BTC and ETH have a pessimistic outlook based on technical analysis
- On-chain metrics have recently shown more consistent accumulation for ETH than for BTC
Bitcoin (BTC) and Ethereum (ETH) were both trading below key resistance levels of $60,000 and $2,600, respectively, at press time. Their 3-day and weekly timeframe market structures were also bearish.
The rapid sell-off in early August sparked panic, but also convinced market participants to buy these top crypto assets. AMBCrypto examined these trends to understand market sentiment. And we found that Ethereum had an advantage.
Price development and technical indicators showed the superiority of sellers
Source: BTC/USDT on TradingView
On the chart, the orange marked the bearish structural break while the clear lower high at $72,000 remained unbeaten. Combined with the bearish RSI on the D3 chart and the downtrend on the OBV, it is likely that sellers will push BTC below $56,100 again.
The first sign of a recovery would be a sustained move above $60,000. However, at the time of writing, the demand was not there to pull off this reversal.
Source: ETH/USDT on TradingView
The technical outlook for ETH is even more pessimistic. The fair value was around $2.8k, with the Fibonacci level of $2.9k above it. This spelled big trouble for Ethereum bulls.
The RSI and OBV suggest that bearish pressure is expected, which could pave the way for a move towards $2.2k.
Netflows showed more consistent accumulation trends for Ethereum
Source: CryptoQuant
The increase in stablecoin reserves, covered in a previous report, highlighted the increasing purchasing power in the crypto market. Immediately following the massive price drop on August 5, BTC net flows were negative.
This showed that coins were leaving exchanges – a sign of accumulation.
Source: CryptoQuant
Ethereum has also seen accumulation since the end of July. The downward trend in the netflow metric has been more stable than in BTC.
This is a sign that Ethereum accumulation was proceeding briskly while BTC holders were more volatile. Unfortunately, this is not a definitive guarantee that Ethereum was more bullish.
Source: CryptoQuant
Finally, Coinbase premiums for Bitcoin and Ethereum were both positive, highlighting greater demand from US investors.
Nevertheless, the premium for Bitcoin has fallen over the past two weeks.
Source: CryptoQuant
Meanwhile, the Ethereum Coinbase premium was slightly more positive, another sign that demand for ETH has been higher than that for BTC over the past ten days.
Read Bitcoin (BTC) price prediction 2024-25
Overall, the metrics showed Ethereum to have an advantage over Bitcoin. The price advantage was with BTC, although both assets were declining during the selected time periods.
A break above the key resistance levels at $60,000 and $26,000 could instill confidence in the crypto markets.
