The long-awaited upgrade to the ETH network happened on Monday but it didn’t do much for the price. Dash continues to lose ground to bitcoin.
No Help from Byzantium
The Byzantium upgrade transpired this week. For more on what this upgrade entails, please take a look HERE. While technically there were no major problems, price-wise there was no boost for Ethereum. As you can see on the chart below, the short-lived bounce in ETH/BTC was sold into. We’re currently quoted at 0.05329, down by 8.6 percent since last Thursday.
The downtrend is still firmly in place. To end it, the bulls will have to rally past the 0.06303 BTC swing high. A new uptrend, on the other hand, needs a break above the 0.07136 swing high. The key support below will be the 0.05 round figure. This a double bottom, with lows made back in August and most recently last week. A decisive break below this important pivot could lead to accelerated losses in ETH/BTC.
Further down we have some support at the 0.04405 swing low, followed by another round level at 0.04 and the 2016 high at 0.03720 BTC. Lower still we find a strong support area consisting of the 0.03409 swing high and the 0.03383 swing lows. A clearing of this area could lead to more losses. On the longer-term charts, the situation is still mixed. The weekly chart is range-bound while the monthly is in rally mode.
Dash Continues to Lose Ground
Dash prices continue to lose ground to BTC. The pace of the losses slowed somewhat, we’re down 9.5% this week versus 20% last week. But the general direction hasn’t changed.
Similarly to ETH, Dash is testing the important 0.05 BTC round figure. On October 13th we traded to a low of 0.04955 but quickly bounced back above the support. This is why we look for a decisive break of these levels, not just a quick and shallow spikes below/above.
However even if the 0.05 level gives way, not far from it we have a large and very strong support area consisting of three previous swing lows at 0.04177, 0.04303 and 0.04420 BTC. A clearing of this area may be needed to open the way for larger losses in DSH/BTC. On the longer-term charts, the picture remains the same, with both the weekly and the monthly looking bullish.
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