Ethereum recent outperformance vs Bitcoin can persist after breakout above Sept highs

Key Takeaways

• Ethereum remains a near—term outperformer to Bitcoin over last two weeks, and this looks to last a bit longer after its breakout above Sept highs
• Solana remains quite bullish after its recent surge, but yet stretched

Bitcoin Technicals – Yesterday’s breakout to new weekly highs following the minor three-day consolidation should be bullish to driving BTCUSD back to test October peaks near 67k. Pullbacks likely find support near 61,800-62,315 with only a break under 60,355 changing the near—term trend and postponing further gains. Daily RSI remains in neutral territory after recent consolidation since late October and weekly trends and momentum remain bullish.

Ethereum still should rally higher up to 4951 with little to no resistance.

Ethereum has led Bitcoin in relative strength over the last two weeks, following its push back to new all-time high territory. Prices have managed to churn higher without becoming noticeably overbought on most momentum gauges.

While weekly and monthly momentum, as per RSI, do show overbought conditions, this won’t be a big deal until near-term Technicals begin to show evidence of upside exhaustion and or a more serious reversal.

Near-term targets for ETHUSD lie near 4951 initially, which represents a 100% alternate Wave extension from the first move up off July 2021 lows, projected from mid—September lows. Additional target lies at 5826.

ETHBTC- Additional Upside likely. Further Relative gains for ETHUSD over BTCUSD still look to continue short—term. If resistance is broken, than a much larger period of outperformance should commence. Relative charts of $ETHUSD to $BTCUSD achieved a minor breakout on October 23, three calendar days after ETHUSD’s breakout over September highs. This put ETHUSD on the front burner in terms of outperformance which has continued in the last two weeks.

Technically speaking, the next week will have importance as this shows ETHBTC nearing a key level of overhead resistance. Breakouts of this level would argue for much more dramatic relative strength in ETHUSD vs BTCUSD, and it would continue to be correct to favor ETH over BTC. At present, the most likely outcome is a bit more outperformance, followed by a stall out. Yet this pattern of consolidation is bullish in the bigger scheme of things. Thus, even on ETHBTC holding near the “White Line” below, an eventual breakout should happen technically speaking in my view. Thus, ETHUSD likely can continue to gain ground on BTCUSD on an intermediate-term basis.

SOLUSD remains a near-term standout after pushing up to hit 235, a level that lines up with a 61.8% Fibonacci alternative projection off the 9/21 lows. This formation remains quite positive but starting to show some momentum divergence near-term on this strength. Despite showing stellar technical structure, momentum readings per RSI and MACD are at lower levels than mid-September. While SOL could show some minor consolidation, dips should be buyable and expect further gains up to 308.60. First meaningful support on pullbacks lies at 178.56 with 152.54 being more important structurally.