Bitcoin heading for monthly gain, Ethereum outperforms

Bitcoin’s price was steady at $47,000 on Tuesday, and headed for its second consecutive month of gains after two months of losses.

Bitcoin trades higher than usual for the month after rising over 18% in July.

Ethereum’s performance is excellent on Tuesday. It has risen 7.5% over the past 24 hours. This may be a sign that a bug in Ethereum’s blockchain has been fixed.

Older versions of the Ethereum client Geth were affected by the bug, which led to nodes being separated from the main network. This bug increased the possibility of counterfeit Ethereum tokens.

Joseph Lubin, co-founder of Ethereum, said that there was an attempt to exploit the bug, but that it was being fixed.

Although the price dropped to $3,060 at first detection of the bug, it has risen to more than $3,400 today.

Ethereum has outperformed Bitcoin in August, with a 35% increase during August.

The rally is still small compared to other Decentralised Finance (DeFi), applications.

Cardano and Solana were the top-performing major cryptocurrency during August with a rise of 174% and 14%, respectively.

Both have the expectation that their DeFi projects will offer greater competition to Ethereum.

Both cryptocurrencies are also benefiting from the recent boom in non-fungible tokens, NFTs.

The developers of Cardano revealed that the Alonzo purple upgrade would be taking place on September 12th. Smart contracts will be integrated on the network, which opens the door to decentralised applications.

Future Price Action for Bitcoin

Bitcoin trades in a narrow range of $46,500 to $50,500 for the past two weeks. Since 19th August, it has not made a clear break on either side of this range.

The world’s biggest cryptocurrency is still above its 200-day moving mean of $46,070.

Analysts have pointed out that Bitcoin’s failure to break $50,000 this weekend could indicate that momentum is slowing down and that a correction may be in the near future.

Craig Erlam, OANDA Senior Market Analyst, stated that there have been many indicators recently that cryptocurrency is in the process of preparing for a correction. The technicals seem to all be pointing the exact same direction.

“Rallies are fading faster, momentum indicators showing divergences, a failed high being one of a few.

“None of these means it’s best days are behind and that we’ve reached the top. But maybe that’s a good sign that there’s a chance for a correction.”

“A move below $46,000 could accelerate that acceleration with the key area becoming $40,000-41,000.”