- Bollinger notes a lack of bullish momentum for Ethereum, contrasting with Bitcoin’s gains, signaling potential market divergence.
- Ethereum’s recent performance was marked by a decrease, with ETH/BTC reaching new lows and experiencing significant ETF outflows.
Veteran financial analyst John Bollinger recently shared insights on Bitcoin’s impressive market behavior, as the cryptocurrency notched another record high, surpassing the $94,000 mark on the Kraken exchange.
This follows the launch of IBIT options, which appears to have catalyzed bullish sentiments within the market.
Bollinger, highlighted that the new peak has effectively neutralized what could have been a bearish divergence according to his bands, a common occurrence in upward trends.
New high for $btcusd today erases a potential negative Bollinger Band divergence. Consolidations create potential negatives. That sort of thing is normal in up trends.
The thing that worries me is that $ETH is not participating. For now it is just a warning, but I am more…
— John Bollinger (@bbands) November 19, 2024
In his analysis, Bollinger pointed out that while Bitcoin is experiencing big gains, Ethereum, has not been part of this upward trend. This divergence between the two leading cryptocurrencies is seen by Bollinger as a concerning signal.
Despite the general market upswing, Ethereum has shown a slight decline, dropping 0.1% on Tuesday and nearly 5% over the past week, with the ETH/BTC ratio reaching a multi-year low of 0.033 BTC.
JUST IN: $94K for one #bitcoin pic.twitter.com/uXMU33vQMq
— Kraken Pro (@krakenpro) November 19, 2024
This underperformance extends beyond Ethereum, with most major altcoins also lagging behind Bitcoin. The only exception noted was Dogecoin, which has seen a 10% increase in the same period. Such disparities in crypto asset performance suggest varied investor sentiments and market dynamics influencing each coin differently.
“For now, it is just a warning, but I am more comfortable with the rising tide lifting all the boats,” he said in a post on social media.
Further complicating Ethereum’s market position are the recent net outflows from spot Ethereum ETF products, which recorded a substantial $39.08 million loss on Monday.
This outflow is indicative of a cooling interest in Ethereum among some investors, contrasting sharply with the robust inflows into Bitcoin-centric investment products.
His final remark on social media, where he expresses preference for a market where “the rising tide lifts all boats” underscores his caution regarding the current selective bullishness in the market.
Ethereum (ETH) is currently priced at $3,095.9 USD, with a daily decline of 0.49%. Over the past week, ETH has dropped 4.67%, but it remains up 12.74% for the month and 35.66% year-to-date, indicating strong growth despite recent corrections.
With a market capitalization of $372.83 billion USD and a 24-hour trading volume of $28.38 billion USD, Ethereum continues to see active trading and liquidity. Key support is around $3,000 USD, while resistance lies at $3,150 USD.
A breakout above this level could lead to further gains toward $3,400 USD, but a failure to hold support may trigger short-term corrections.
