Finally, we have been watching the ETH/BTC spread closely, and witness a price run up from .035 to just above .04 over the last few weeks. Fundamentally, we have expressed our view on this spread almost a month ago:
[BitOoda thoughts on Ethereum 12/7/2018:
We mentioned in our 12/17/2018 Morning Summary that while Ethereum was in a bear market with other crypto-assets it is in a more mature stage than Bitcoin. That made us look at a relative value trade of ETH/BTC pair. Coincidentally, the ratio made a 0.026 low just as we were writing the commentary. There are a lot of historical highs and lows in the 0.026-0.03 range that seem to provide a support/resistance level. The pair has rallied significantly in a short period of time to 0.035 generating a nearly 35% return in a matter of days.
We believe that to a trader who is constructive on the space there is still a lot of room to the upside with 0.05 level providing the first significant resistance.
A more cautious approach would be to wait for a retest of the 0.026 level before getting long the pair.
This is a lower beta way of getting long a crypto-recovery with most of the broader marketpace risk hedged away. ]
After this weekends price action, this could be a decent entry point start accumulating a position
[BitOoda thoughts on Ethereum 12/7/2018:
We mentioned in our 12/17/2018 Morning Summary that while Ethereum was in a bear market with other crypto-assets it is in a more mature stage than Bitcoin. That made us look at a relative value trade of ETH/BTC pair. Coincidentally, the ratio made a 0.026 low just as we were writing the commentary. There are a lot of historical highs and lows in the 0.026-0.03 range that seem to provide a support/resistance level. The pair has rallied significantly in a short period of time to 0.035 generating a nearly 35% return in a matter of days.
We believe that to a trader who is constructive on the space there is still a lot of room to the upside with 0.05 level providing the first significant resistance.
A more cautious approach would be to wait for a retest of the 0.026 level before getting long the pair.
This is a lower beta way of getting long a crypto-recovery with most of the broader marketpace risk hedged away. ]
After this weekends price action, this could be a decent entry point start accumulating a position
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.