Many traders expected an impressive Ethereum (ETH) breakout last week, in the recent tradition of Litecoin (LTC), Bitcoin (BTC), and Bitcoin Cash (BCH). Although Ethereum has done very well since December, more than doubling in price through that period, a truly impressive breakout to $200 and above did not come before Bitcoin was rejected between $5,300-400.
ETH versus USD has corrected only gently, and rests on several bands of support.
The #2 crypto is performing slightly better (again, versus USD) than Bitcoin on the technical indicators. Higher lows are being put in on the lower time frame RSI, whereas BTC has begun putting in lower lows in a bearish divergence.
Despite this decent-looking performance, ETH/USD now stands at a critial point according to the MACD/Historgram indicator (whereas the ETH/BTC indicator is fairly flat). The MACD trend lines look poised to cross, which would probably kick Ethereum down at least to the next support level. We can also see a very slight divergence on the histogram, versus ETH’s February performance.
This next level in the mid $150’s, was the breakout point for the recent April uptrend, as well as the main resistance level (defined here by full candle bodies on the daily chart) for the pre-April market structure. If ETH were to take another leg down, this zone would serve as critical support.
A fall below this level - which would probably be mirrored by Bitcoin - would be very serious, and signal another stage of the 2018 bear market. Given the past weeks’ and months’ performance accross the markets, however, this seems unlikely.
(The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)