Ethereum is on the rise again, but for how long?- Yesterday evening the company Amazon, one of the largest capitalizations in the US market, posted disappointing quarterly results. Following these results, the stock lost 20% in a few minutes. Bitcoin being highly correlated to the US equity market, a fall of this magnitude could have rocked the cryptocurrency market, especially in the middle of the bearmarket. Yet Bitcoin, Ethereum and altcoins have proven to be quite resilient, is that good sign for the weeks and months to come ? Ethereum has the opportunity to regain bullish momentum, but it will be a long road to the second capitalization of the cryptocurrency market.
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Ethereum against the dollar: resistance approaching
Ethereum still bearish in the long term
In high time units (3 weeks), Ethereum (ETH) is always bearish. The price starts to rise again, but resistors important ones come in the way of the king of altcoins:
Ethereum is approaching two resistors important: the institutional bias (EMA 9/ EMA 18) which acts as dynamic resistance and the weekly resistance at $1,900. If buyers continue to hold their hand, it is likely to see a shortness of breath at these technical levels.
On the other hand, buyers have the opportunity to change momentum in this very high time unit. For this, it will be necessary to observe a fence greater than 2 000 $. This would potentially make it possible to head towards the last highs, but there is still a long way to go.
In this unit of time, the momentum is always bearishthe RSI approaches the level of the bearish trendline. She should do résistance in the coming days. When the trendline gives way, long traders will then take advantage of the momentum to increase the pressure.
Ethereum bounces off the support level at $1,250
Buyers succeeded in defending the bracket at $1,250 and the price rebounded, to overcome the institutional bias. Ethereum is on the rise again, but resistors are already approaching:
The course of the second capitalization of cryptocurrencies is regaining color. In just a few days, ETH soared by almost 35 %. The upward movement is present, but the momentum still remains fragile because of the wick under the support. The objective of buyers is now to find a bullish momentum with troughs and rising peaks. For the moment, the momentum is fragile and a return to 1 000 $ is to be considered.
The momentum tries a new breakthrough of the bearish trendline by marking a bullish divergence. This shows that sellers are running out of steam, buyers must take advantage of this to change momentum in the medium term. To find an interesting momentum, it would be necessary to resume a bullish momentum by closing above 60 of RSI.
Ethereum regains strength against Bitcoin
Against Bitcoin, ETH is on the rise again, but it remains in the weekly range :
We were talking about it last week, Ethereum had to keep the intermediate support of the range, buyers responded. The price rebounded at the level of the double support : intermediate support et bearish trendline. Of course, the pair remains in a range, it will be necessary to leave the range definitively to find a season of altcoins.
The local top was made on a structure fragile in “V top”, the operators have the possibility of changing this “V top” in bullish continuation or in double top. The buyers’ objective is to hold the last low and break out of the range. Sellers, on the other hand, have the opportunity to mark a long-term top in the event of a close falling below support. This price action would be extremely bearish and the long-term dynamic could be called into question.
This market analysis is brought to you in collaboration with CryptoTrader™ and its algorithmic trading solution finally accessible to individuals.
Bitcoin dominance shows signs of weakness
For the past few weeks, Bitcoin has been attracting capital, but will the trend continue? Altcoins show up resilient given the current context:
Bitcoin dominance is also in a rangein between 40 % et 48 %. Currently, it is on a level of résistance materialized by the EMAs. A return to the bottom of the range would not be unlikely in view of a change in momentum.
Given the current context, it seems very unlikely to experience a altseason shortly. On the other hand, a rise in altcoins, even timid, is not impossible. Whatever happens, the real trend will set in when the dominance comes out of the weekly range.
The momentum is bullish in this unit of time, the RSI marks several bullish divergences important. This criterion alone shows that Bitcoin could, in the medium term, continue toattract capital.
The capitalization of altcoins is still in a downtrend
Despite the recent rise, the capitalization of altcoins is still bearish :
On a weekly basis, the lows and highs are descending from the high marked in August 2022. Currently, the price is facing the dynamic resistance (institutional bias). For the moment, the rise remains timid and the course could even be dismiss in the coming weeks.
As long as the price remains below the resistance at $690 billionthe price will remain fragile. On the other hand, buyers have the opportunity to change momentum by breaking back above resistance and closing above 700 billion dollars.
The momentum is strong, a bullish divergence has just been validated with the fence above 38 of RSI. A second could fall into place by overtaking 42 of RSI. This shows that sellers are running out of steam, but buyers need to take advantage.
All in all, Ethereum remains bearish and below its weekly resistance at $1,900. Buyers have the opportunity to change long-term momentum by closing above $2,000. Ethereum reacted well at the support level at $1,250, buyers now need to mark a higher high, higher than the previous ones to show that they do indeed have control over the price currently. The ETH/BTC pair is still in a range, but traders have shown interest in Ethereum recently. Can the trend continue? If Ethereum loses strength against Bitcoin, altcoins could take a big hit.
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