Different signals for Bitcoin and Ethereum ──Both fell for the first time this year in May | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) and Ethereum (ETH) saw their first declines in 2023 in May, but they also started June lower. But despite similar price movements, the CoinDesk Indices Trend Indicator shows a difference in short-term direction.

The Bitcoin Trend Indicator (BTI) is a “neutral” signal while the Ether Trend Indicator (ETI) is showing a “significant uptrend.”

Bitcoin Trend Indicator

This indicator shows the direction and strength of momentum in asset prices. Every day, it generates 5 signals ranging from “significant downtrend” to “significant uptrend”.

Ethereum trend moved from “neutral” to “significant uptrend” three days ago. Bitcoin turned from a “downtrend” to “neutral” four days ago.

Ether Trend Indicator

The gap between Bitcoin and Ethereum is closing

A longer-term view of the Ethereum chart shows a general uptrend after November 2022 and a 55% gain so far in 2023.

Bitcoin’s 62% year-to-date gain is still outpacing Ethereum, but in May, Ethereum was largely flat while Bitcoin fell nearly 8%. That gap has narrowed over the past month, with the ETH/BTC ratio up 8.2% since April 30.

Ethereum bulls will also point to the shrinking supply of 274,000 ETH after September 2022 as a factor.

On-chain data shows investors remain bullish on Ethereum. Ethereum futures funding rates have been positive for all but two days since April 7. A positive funding rate indicates bullish investor sentiment, a negative one indicates bearish.

Bitcoin’s funding rate also remains positive, indicating continued bullish sentiment despite the recent price drop.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜Original: On Heels of First Losing Month of 2023, Bitcoin and Ether Flash Differing Signals