Is the holiday coming for cryptocurrencies? Ethereum is on the rise almost 35% since early 2023, but the price may take a break. Altcoins are recovering, but Bitcoin seems to be attracting capital. Is the bear market not over yet? Can altcoins rise again? Can Ethereum Overtake Bitcoin? Let’s analyze the charts!
The return of the bullrun? Volumes in the chain are falling sharply
With this last strong upwe can see the word again bull run in networks, which had left our vocabulary since the beginning of 2022. Of course, Bitcoin (BTC) is on the rise in 2023, but it still looks too early to talk about a bull market comeback. In Ethereum, we see that transaction volumeshave been in freefall since June 2021:
We can note that the same phenomenon had already occurred in 2018. Indeed, volumes increased until January 2018, the start date of bearmarket for cryptocurrencies. From the beginning of January 2018 to the end of 2022, the volumes were very weak in Ethereum. In 2021, volumes began to up, as the price of the second capitalization of cryptocurrencies. When’EUFOR is present in the cryptocurrency market, volumes increase and when fear is present and that the actors have left the ship, he said the volumes drop.
We see that the trend is very big wave on chained volumes, it may be necessary to wait for a new one growing trend in this type of metric to find a clear upward trend in Ethereum price.
Back to $1,350 for Ethereum?
From the fence above 1350 dollarsEthereum is back bullish momentum short term. However, we must not forget that the course is stuck in a adjust between 1000 dollars AND 1900 dollars :
Recently, the price broke bearish trend line which had declined in price since August 2022. This added to the momentum reversal indicates that buyers are present. However, it often happens that neckline of “W” has been retested by the market. Therefore it is quite possible to review the price of Ethereum in 1350 dollars in the following days or weeks. The price has certainly changed the momentum, but the last peak for it 1674 dollars has not yet been surpassed. However, in one bullish momentum clear, troughs and peaks are climbing.
Whatever happens, the price remains below weekly resistance at $1900and under bearish trend line launched in November 2021. As long as this is the case, the price will remain fragile and the momentum will not be clearly bullish. There is still a long way to go for the Ether coin.
The moment is encouraging. The RSI seems to have outperformed resistance effective from November 2021. To confirm this trend, the RSI will need to continue to develop above this resistanceand make one SUPPORTING. Since the change in momentum in the course, the RSI is above bullish trend lineand as long as that is the case, buyers hold the momentum.
Ethereum: ETH/BTC pair in indecision
of last weekwe were talking about one bullish signal for the ETH/BTC pair. Indeed, the pair has reversed short-term momentum with the above close 0.076 BTC :
The course is forming a the trianglesign that lower volatility and that buyers and sellers neutralize each other. This type of construction leads to instability, but it is difficult to say in which direction. The dynamic is wave in the short term, but the price has not yet marked a high above the previous one (0.079 BTC). The couple is stuck under weekly resistance at 0.08 BTC. So the two scenarios are:
- Triangle explosion from above: in case of closure above 0.079 BTCthe course may break weekly resistance with instability.
- Triangle propagation from below: the price can then decrease intermediate support from range to 0.066 BTC.
The moment broke bearish trend line, may jump on it in the coming days. It will be necessary to continue to show bottoms and tops on the climb. To begin with, a fence above 61 of the RSI would allow the momentum to continue. The pair is in one adjust for nearly two years, could he finally settle on a clear direction for the coming months?
Bitcoin attracts capital, risk for altcoins
Bitcoin’s dominance is growing, and it isn’t not necessarily a good sign for altcoins :
The price returned to the level of institutional biases (EMA 9/EMA 18). Bitcoin’s Dominance Is Growing, the king of cryptocurrencies attracts capital. IN This article, he explained why altcoins may suffer if Bitcoin’s dominance increases. If the price of Bitcoin goes up, altcoins will also go up, but they will be less efficient than Bitcoin. If the price of Bitcoin falls, altcoins may fall more sharply. Given Bitcoin’s moment of dominance, the price is headed right Resistance 44%..
The moment is wave, troughs and peaks are climbing. Also, the RSI is moving above bullish trend line.
Altcoin capitalization changes the dynamic
Thanks to this upward movement, altcoin capitalization changes the dynamic :
Altcoin capitalization returns to the level of support at 440 billion dollars and fence above 495 billion dollars. Thanks to this closure, the dynamic is once again wave short term. Beware, a retest of the “W” neckline is possible. This would test the resistance that has been made support at 480 billion dollars.
The momentum builds again up. It looks like the RSI has managed to break above resistancewe will have to continue to develop on this area.
If buyers have recently appeared in the cryptocurrency market, the price market is not necessarily over. As we have seen, the transaction volume on Ethereum is in free fall, it will be necessary to regain some upward momentum to see the presence of new entries on Ethereum. Ethereum may take a break and return to the “W” neckline at $1,350. Momentum reverses in the short term, but the price remains below weekly resistance at $1,900 and below the downtrend line. Against Bitcoin, Ethereum has the chance to eventually break out of the range, but Bitcoin has not had its final say. Indeed, Bitcoin’s dominance is growing, and that doesn’t necessarily bode well for altcoins. Despite everything, altcoins have started to grow again and the market capitalization has returned above the important resistance at $480 billion.
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