After Bitcoin’s decline, Ethereum sees a surprising benefit, Is this a buy-the-dip indicator?

Spread the love

 804 Interactions,  4 today

On Monday, the price of Ether increased in its BTC pair as the price of Bitcoin fell below $60,000.

Over the weekend, the price of Bitcoin (BTC) reached a new all-time high above $60,000 for the first time. However, the same cannot be said for Ether (ETH), and the business as a whole did not show any intensity following for a continuation. As a result, the price of Bitcoin has dropped by 7% in the last 24 hours.

ETH fell in its US dollar pair after this pullback. The ETH/BTC pair, on the other side, saw a bounce. It’s likely that altcoins are attempting to consolidate against BTC at the same moment that Bitcoin is paring some of its huge weekend gains. Might this be a reference to a possibly huge rally for Ether later this year? Let’s take a look at those graphs.

Ether fails to break above $1,900

ETH/USDT 4-hour chart. Source: TradingView

On March 13, Ether struggled to crack through $1,900, which is effectively the last hurdle before approaching the psychological barrier of $2,000. The whole sector is hoping for a clear break over $2,000, and it appears that it will have to wait a little longer.

RECOMMENDED READ:  Why Hedge fund manager, Ray Dalio predicts a ‘high chance' of a Bitcoin ban in the United States.

Beautiful support/resistance flips for further upside have been seen after the bottom at $1,300. The previous support/resistance flip happened at $1,740, resulting in a rebound towards $1,900.

However, Ether’s price soon returned to this $1,740 mark. Such a decrease is a sign of weakening, particularly because multiple tests of key support thresholds raise the likelihood of further decline.

In other words, if Ether’s price can’t maintain the $1,740 level, the market should brace itself for another drop towards the $1,500 level.

 

ETH/BTC holds firm

ETH/BTC 1-day chart. Source: TradingView

Fortunately for the bulls, the ETH/BTC pair has kept up well throughout the recent decline in BTC price, seeking help in the 0.029–0.031 sats range. If this support zone is missing, the next support zone is located at 0.025–0.0275 sats. This degree, in particular, must be maintained in order for the ongoing bull market rally to continue.

Meanwhile, the map reveals that altcoins do not always rise in value. They often face significant corrections, and ETH/BTC has been in correction mode since February.

RECOMMENDED READ:  Glassnode expects a BTC recovery as stablecoin availability reaches all-time highs.

Nonetheless, the architecture itself remains unchanged and valid, with higher lows and higher highs being printed on a regular basis.

 

ETH/BTC 3-day chart. Source: TradingView

The ETH/BTC map remains bullish. Since the summer of 2019, the steady higher lows have been in play, setting off a general uptrend.

Consolidation cycles are common in such uptrends. However, the bullish structure remains true as long as the structure of higher lows persists. As a result, the previously mentioned areas, including the area between 0.025 sats and 0.0275 sats, should be controlled.

A quick impulse leap for Ether is probable when Ethereum 2.0 approaches its release date, which could help overcome some of the scaling problems and high transaction costs. Before then, the project will definitely be plagued by FUD (fear, confusion, and doubt) and cynicism.

However, traders should be mindful that when investor sentiment is pessimistic, it is typically the safest time to enter, rather than exiting, or FOMOing, when the market is overheated.

A possible scenario for Ether price

ETH/USDT 3-hour chart. Source: TradingView

The vital levels to carry for Ether right now are $1,700 and $1,740. As long as this help area stays below, tests of the resistance thresholds above should occur. The $1,830–$1,860 mark, on the other hand, is a vital resistance to resolve.

RECOMMENDED READ:  Nomura Research Institute Develops Price Appraisal Solution for Cryptoassets

However, following the recent change in market sentiment, breaching the $1,830–$1,860 range is impossible in the near term. If the resistance holds, Ether could see another corrective step towards $1,500.

Once this phase of consolidation and compression is over, the next major impulse wave could occur. This impulse wave is expected to catapult Ether well past $2,000. However, vigilance is essential, and investors should realise that fundamental and price changes take time.

 

cryptomichnl

Leave a Reply

Contact Us