Ethereum in full comeback, will altcoins benefit from it?

In this new crypto weekend update, we will analyze the general market situation by looking at different elements such as the overall market capitalization, the situation of altcoins, and many other things! We are now entering the summer, which may suggest the coming weeks will be rather calm. However, is it done? Not really, which will lead us to identify the levels to watch on cryptocurrencies for the coming weeks.

This market analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.

Cryptocurrencies continue to move under resistance

Price of the total market capitalization of cryptocurrencies on the 1D unit of time (Bitcoin, Ethereum and altcoins).

Since last week, the situation has not fundamentally changed for the cryptocurrency market since it is still evolving below the major resistance zone at 1147 billion dollars. As a result, the words may seem repetitive but as long as the market does not manage to free itself from this technical zone, it will be difficult to envisage a new bullish leg.

However, nothing assures us that the market will necessarily fall significantly. Indeed, at present, the market is in a period of lateralization by remaining above the technical threshold at 1034 billion dollars. This is the major level to watch, the one that will trigger the downward momentum if the price goes below this level.

Indeed, previously it was a particularly important resistance in the market which, when broken, paved the way for the highs of the summer of 2022, which is rather interesting. Therefore, see this level as a complementary pivot to the one at $920 billion.

Altcoins ready for a short bull run?

Price of the total market capitalization of cryptocurrencies on the H4 time unit (Bitcoin and Ethereum excluded).

For the capitalization of altcoins, we have voluntarily scaled H4 in order to better study the evolution of capitalization within the range. After having rebounded perfectly on the lower limit of the range, the altcoins have built a new, smaller range, between 340 and 352 billion dollars. Operating as resistance for several weeks, the price has just overcome it, is this again a false breakout?

If this is the case, we will have, once again, the reintegration in this new range with strong probabilities of a return of the price on the lower limit at 340 billion dollars. However, if the current momentum is maintained and there is price acceptance above the current level, it is likely to see a return of the altcoins to the pivot of the range at $363 billion.

Thus, the bias to have at present in H4 is bullish. Nevertheless, as long as the pivot is not regained, it will be difficult to find the altcoins on the upper limit of the range, especially since other resistances will present themselves on the way such as the technical level at 373 billion dollars.

Is the fall approaching for the dominance of the king of cryptocurrencies?

Course of Bitcoin dominance against other cryptocurrencies over the unit of time 1D

For the past few months we have been alerting to the situation of the dominance of the king of cryptocurrencies. Indeed, it has been evolving for several weeks under a technical resistance at 48.25% and has not managed to break free from it for a long time. As a result, we had the opportunity to build a bearish scenario with a return to dominance, for the end of 2023, in the 40% technical zone.

In this context, are we witnessing the beginning of a lasting bearish leg for the dominance of the king of cryptocurrencies? For now, keep your eyes on the first technical support which is at 46.85%. As long as it is not lost, the scenario will be less likely to occur. However, if this level drops, a new low point will be registered, which will increase the probability of the installation of a downtrend.

Thus, bitcoin dominance could return, during the month of June, to the technical level of 45.47% dominance. This could benefit a hypothetical upside for ethereum which, let’s remember, is sort of the leader of altcoins when it is outperforming against the king of cryptocurrencies.

Ethereum regains strength against bitcoin

Ethereum price against Bitcoin over the time unit 1D

Against bitcoin, ethereum is particularly interesting to watch since it broke upwards an oblique resistance under which it had been evolving since the beginning of 2023. The crossing of this oblique resistance, explained by the gain in strength of bitcoin since January, demonstrates a change in trend in the balance of power that exists between ethereum and bitcoin.

Now that there is price acceptance above this oblique resistance, confluent with the horizontal level at 0.068BTC, the bias to have is bullish. However, there is still a long way to go since ethereum is approaching an important resistance at 0.072BTC.

Having been below this level for several months, it is very likely to see a price reaction when it returns there. Thus, this is when the buyers will have to come forward with a powerful bullish reaction since a recovery from this level will allow the price to head to 0.075BTC. What should be noted is that such a scenario would be a boon for altcoins to stand out and, in turn, post strong performances.

DeFI cryptocurrencies are now on hold

Decentralized finance cryptocurrency capitalization price over time unit 1D

To end this analysis, we can make a short observation of the current situation of decentralized finance cryptocurrencies. Although ethereum may recover strongly in the last few days, this is by no means a guarantee that all altcoins will take 30% per day for several months. Currently under oblique resistance, the $41.6 billion support is particularly well defended by the market.

If ethereum extends its rise over the next few weeks, this would be the ideal context for a further increase in the capitalization of decentralized finance cryptocurrencies. If the oblique resistance that you see on the chart breaks down, the price will head to $46 billion before finding resistance at $52.6 billion.

Here we are at the end of this analysis of the cryptocurrency market. It is clear that with the strong recovery of ethereum, the dominance of bitcoin has lost significant power, which leads us to monitor the reaction it will have on its support. Although DeFi capitalization is amorphous, altcoins have recently broken free from technical resistance. This dynamic could become particularly interesting and lead to some nice upsides, provided ethereum doesn’t spoil the party with a bearish leg. While bitcoin was the king of the market at the start of the year, we are potentially witnessing a change in dynamics, which should alert you and lead you to watch ethereum for the next few weeks.

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