The momentum of the electricity market has recently returned to Bitcoin (BTC) as the dominance and volume of BTC increases with price. In this context, the main altcoin index, ETH (ETH), has not performed well as ETH / BTC has dropped 30% over the past two months.
Now, many cryptocurrency traders are asking when altcoins will fall and start rising again. Let’s take a look at what the charts offer.
The weekly chart shows a thin range as ether cannot break through the $ 450 resistance range. However, some bullish indicators appear on the charts.
One such bullish indicator is the breakout of the 100- and 200-week moving averages. These moving averages are often viewed as a crucial indicator of bullish / bearish sentiment in the markets. Since the price of Ether has broken the moving average in previous months, it’s safe to say that this cryptocurrency is in bullish territory.
Yet another upbeat argument is the $ 270 outbreak, which has resisted for over a year and has only been overcome in recent months.
There was a clear breakthrough, after which Ether rose to $ 450. However, there was no clear support / resistance reversal for the $ 270 range on this breakout, which means a rebound to that level would be relatively healthy.
Thus, based on the weekly chart, a range of $ 270 to $ 450 was created. In other words, a revision of the $ 270 range on the table is possible.
A breakout of $ 450 higher means it is likely to hit $ 800.
Ether is backed by $ 368- $ 375 support
The daily chart shows a potentially rising wedge formation with decreasing volume. The rising wedge construction is currently fixed at the $ 368-378 support. This level is important for lower timeframes.
If this area is lost, a serious landing can be expected. In this regard, there is a test at $ 315 or $ 270 and possibly $ 250 on the table. If the level is lost at the $ 368-378 level, the 100-day moving average will also lose its support value, indicating a more likely downside.
The 4-hour chart indicates a slight bullish move in the last 24 hours. However, the bullish rally failed to break through the $ 400 resistance zone, resulting in a significant drop thereafter.
This drop was also fueled by weakness in the bitcoin markets and massive inflows of unit ETH to stock exchanges just minutes before the drop.
Historically, the fourth quarter is not the best period for the ETH contract, which expires in December. The situation has not changed this year, with the price of ether falling 30% from its recent high of 0.04.
The Ether vs Bitcoin comparison chart shows a clear overview of the support and resistance levels.
On higher timeframes, a potential support area is approaching. Along with the 200-week moving average, support can be found in the 0.024-0.026 sedentary range as this is an area with previous head resistance for support.
The daily ETH / BTC chart has shown a slight rebound in the last few days when the 0.028 area has been seen as support. However, there is no sign of a reversal yet as it looks like Ether is still correcting.
Bullish arguments can be put forward when the upper resistance range of 0.0315 breaks and rolls over for support. Other bullish signals include a 0.026 dip in ether sitting with a bullish bias at the bottom. This will be the strongest figure for the chassis.