Does Ethereum have the strength to regain power? – The end of the year is approaching and cryptocurrencies seem to lack the strength even to rally against the trend. While the trend is now bullish in the short term on Bitcoin, cryptocurrencies are struggling to perform. Ethereum reacted well at $1,250, but the upside remains sluggish for now. Is Ethereum price blowing, preparing for another push towards resistance at $1,900?
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Weekly Ethereum Analysis
En weekly, Ethereum (ETH) is always in a range in between 1 000 $ et 1 900 $ :
ETH is bearishbecause the price is still below the weekly resistance at $1,900 and under the bearish trendline. So the institutional bias (EMA 9/ EMA 18) is acting as dynamic resistance for now, and could once again dismiss the course in the days or weeks to come.
A return to 1 250 $ would give buyers the opportunity to change momentum on a weekly basis. Indeed, if the last lowest is kept, and the price then closes above 1 650 $the dynamic would return bullish. This is the scenario indicated by the green arrow on the graph. On the other hand, if the price manages to push to the resistance at $1,900, there is a good chance that he will be rejected. This is the scenario materialized by the red arrow.
Buyers need to defend the latest low at $1,190 to avoid finding the range low at 1 000 $. A weekly close greater than 2 000 $ would be interesting, because it would sign a change of dynamic with a accumulation over several months. the momentum is above the bearish trendline, we should get out of this area for good. This would show that the sellers have lost their strength and that a long-term trend change is taking place.
Looking at the shorter term, it looks like buyers have something to play for 1 450 $ :
In this unit of time, the EMAs are passing bullish. As explained above, EMAs act as dynamic support or resistance. Here they could act as dynamic support and thus restart the course until the resistance at $1,900. Nevertheless, the dynamic is still fragile, as evidenced by the descending highs and lows at the moment. A fence above 1 800 $ would make it possible to break the last high, and perhaps to glimpse a change of dynamics.
The momentum is bullish from the rebound at the support level to 1 000 $. As long as the RSI maintains the bullish trendline, it shows that buyers can still boost the price. It will be necessary to be vigilant at the break of this trendlinewhich could mark the end of the rise.
Resistance for the ETH/BTC pair
The last weekwe were talking about a possible return to the level of the weekly resistance for the ETH/BTC pair. It is now done, the price observes a respiration currently :
The range set up in May 2021 will he finally give in? For this, it will be necessary to break the last highest, above the weekly resistance (green arrow scenario). Attention, if the price closes below the last lows and below the intermediate support of the range, the return in bottom of range will be considered. For the moment, the institutional bias is passing bullishthe price could rely on this dynamic support to start rising again.
For its part, the momentum remains quite fragile, it does not describe a clear dynamic. It will be necessary to free oneself from the zone to 70 of RSI to hope for a little bullish volatility.
Bitcoin dominance continues to fall
Bitcoin dominance is back at the level of the weekly supporta support hit for the fifth time:
The dominance is bearish in the very long term, and this should not change in the years to come if we think that the ecosystem will continue to develop. Over time, Bitcoin should take up less and less space in the ecosystem. For the moment, the trend is in a ranges between 40% and 48%a real break in the support to initiate a altcoin season.
Beware, if the dominance recovers here and it starts to rise again, closing above 42 %, the momentum will turn bullish again in this range. Given the current context of bearmarket, it’s a safe bet that Bitcoin could then attract capital by causing the altcoins to fall. This is exactly what happened in 2018.
Altcoins on their way to resistance at 700 billion?
Altcoins remain feverish at the moment the price of altcoins capitalization is at the level of the institutional bias on a weekly basis, it could do résistance :
On a weekly basis, the capitalization of altcoins is stuck at the level of the institutional bias. This one could dismiss course in the coming days. The momentum, on the other hand, is encouraging, it continues to show bullish momentummarking a new high.
In the shorter term, the course could rely on the institutional bias that has just passed bullish :
The price could rebound at the level of the EMAs at 550 billion capitalization and then join the resistance at $680 billion. In the event that this scenario occurs, it will be necessary to go back above the weekly resistance to find a capitalization of altcoins bullish.
Since this summer, the momentum has been encouraging, it could confirm the uptrend closing above 57 of RSI.
Ethereum could reach resistance at $1,900 in the coming days or weeks. This zone should be resistance, it will be necessary to exceed it to find a bullish momentum on a weekly basis. Against Bitcoin, Ethereum is once again against resistance. Again, it will be necessary to break this resistance definitively to relaunch the bullish momentum on the ETH/BTC pair. A bullish momentum in the ETH/BTC pair would be beneficial for altcoins, as ETH is the leader in altcoins. Moreover, the dominance of Bitcoin is falling, the trend would have to continue for the altcoins to be able to express themselves. Also, analysis of altcoin capitalization shows that altcoins could climb in the short term to regain resistance.
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