- As the debate heats up between Cardano and Ethereum, both coins have performed exceptionally well.
- However, ADA has provided investors with more positive returns than ETH in 2023.
Ethereum [ETH] has been facing strong resistance near the $2000 mark at the time of writing, but the price action showed that a move above this critical resistance level was likely. Cardano [ADA] has also performed remarkably well in the markets over the past three months. A recent report exploring the Cardano roadmap highlighted that the Valentine upgrade helps developers expand the Cardano’s compatibility.
Read Cardanos [ADA] Price Forecast 2023-24
Like Ethereum, Cardano bulls also faced a bearish stronghold just overhead. The release of the first Hydra head was a Big step in improving the scalability of the chain. It has posted more gains than Ethereum since the turn of the year, which can be partly explained by the negative sentiment behind ETH over the past month.
Cardano vs Ethereum: How the altcoins fare
Source: ADA/USDT on TradingView
Measured from the 2023 swing low at $0.2434 to the swing high at $0.4617, ADA had posted an 89.7% gain, which was more than Ethereum. In mid-February, ADA reached the $0.42 resistance but was forced back to the $0.3 support. At that time, Bitcoin fell from $25.2k to $20k and saw intense bearish sentiment develop in the crypto markets.
It took ADA bulls six weeks to rally past the $0.42 resistance, but another wave of selling saw prices drop to $0.378. The market structure remained intact, but only just as a daily session near $0.3715 would have shifted the market structure to bearish.
The RSI has hovered around the neutral 50 for the past month, but the OBV has seen a slight increase over the past two weeks. This suggested demand was there, but momentum was sluggish as ADA bounced between $0.38 and $0.41.
Source: ETH/USDT on TradingView
However, Ethereum is in an uptrend for most of 2023. On January 11, ETH’s daily market structure shifted from bearish to bullish after prices surged above a recent lower high of $1352.
Measured from the swing low at $1190 to the swing high at $2141, ETH posted an 80% gain. Ethereum also saw a $1700 retracement in mid-February, but unlike Cardano, it was able to break through that resistance quickly after the pullback.
At the time of writing, Ethereum’s bullish structure remained intact on the daily time frame. The recent higher low was $1686, and a move below this level would indicate a bearish structure shift. In the north, the resistance levels of $2000 and $2155 have been important in the past.
The recent move above $2000 in mid-April was halted at $2141. This was similar to Cardano’s 2023 trend. One of the main differences was the pace of the bullish recovery in late April after a pullback.
Read Ethereum’s [ETH] Price forecast 2023-2024
The ETH D1 indicators showed that the king of altcoins had shifted from strong bullish to neutral. The RSI rose back above the neutral 50 after falling to 43 during the pullback from $2141 to $1785. At the time of writing, it was back above the neutral 50, but had yet to climb above 60.
Meanwhile, the OBV also saw a dip during the pullback of the past two weeks, but started to notice small gains over the past four days.
Ethereum in an accumulation phase
Source: Sanitation
Santiment’s data from the past six months suggested that Ethereum bulls were in a better position than the Cardano bulls, as deduced from the price action. For Cardano, the MVRV ratio was just below zero and showed strong profit taking over the past month.
It also showed an undervalued asset, but daily active addresses have been slowly moving down over the past two weeks.
This may be an indication of reduced demand for ADA tokens. The average coin age was also on a downward trend. This underlined the large token movement between addresses and was a sign of selling pressure.
Source: Sanitation
On the other hand, Ethereum’s average coin age has been slowly moving up since the end of March. Over the past two weeks, this statistic has stood in stark contrast to Cardano’s average coin age. The accumulation phase for Ethereum was another sign that ETH bulls were in a better position than their ADA counterparts.
The MVRV ratio peaked in recent days and remained in positive territory. Combined with the asset’s proximity to the $2000 resistance, this could prompt holders to cash out in profits and lead to losses in the days to come.
Ethereum bulls get bragging rights, but Bitcoin…
The fact that ETH was able to move past April resistance in the $1950 region while ADA continued to toil below the $0.4-$0.41 region showed that Ethereum bulls were stronger than Cardano bulls. Therefore, Ethereum was more likely to post strong gains than Cardano delivered Bitcoin [BTC] sees no violent sell-off.
Bitcoin was below a significant resistance zone in the $30,000 – $32,000 area. It remained unlikely to move strongly past this area in the coming weeks without a significant retracement, although it was not a guarantee. Therefore, ADA bulls can wait for a move to $0.378 or $0.35 before buying.
In addition, Ethereum investors can wait for a dip to $1800-$1850 to buy. But a much riskier idea would be to buy a breakaway over $2000, though that could turn out to be a liquidity hunt before a turnaround.
Which horse will ChatGPT return in this race?
ChatGPT had some incredible expectations from Cardano for 2023. While the bot isn’t designed to make accurate predictions and can only access data up to September 2021, it might be nice to give its jailbroken version, DAN, bits of information and to ask it is take.
Regarding the Cardano vs Ethereum argument, DAN said:
Source: Open AI
This prediction should certainly be taken with a grain of salt, but the chatbot expects Cardano to be much more bullish than Ethereum for the remainder of 2023. Let’s see how the price action of both assets develops over the coming months, and whether Bitcoin can start another rally in early 2023.
