With Bitcoin (BTC) seeming to have rolled over from its astonishing local high of $14,000, many eyes are now turning toward major altcoins like Ethereum (ETH) which have been largely relegated to the back-burner of late.
Looking first at ETH/USD, we notice that Ether is mostly tracking with Bitcoin’s movements. Like Bitcoin, Ether yesterday (27 June) plunged almost exactly 25% just as Bitcoin did, from $363 to $274; and just as Bitcoin currently is, Ether is being bought up in a sharp but questionable counter-rally.
This bounce is keeping ETH above a very significant block of price, which perfectly corresponds all the way back to August 2018 on the weekly chart, as well as the recent daily chart.
This block, in red above, is between $295-274, and staying above it would signal a very bullish outlook for the leading altcoin in the near future. If Ether can do that, it should be able to start eating through the 21 and 55 exponential moving averages (EMAs) on this 4-hour chart.
Whether or not this happens largely depends on the ETH/BTC chart. Looking at the daily chart, we can see that Ether is stuck in a block of very important price support – important because it has held since *March 2017*, and because there is not much but open air below it.
Thus, it is very important to hold this level, and to get a bounce. This bounce, however, does not yet seem to be materializing. The market is likely waiting to see what Bitcoin will do – if it will resume a new blistering uptrend, or begin a larger correction to the downside.
Given the gravity of the situation, though, combined with the general bullishness in the cryptoasset markets, it seems unlikely that Ethereum bulls will allow this level to give way (opinion alert).
Zooming into the 2-hour ETH/BTC chart, though, will give us cause for some optimism.
Price seems to be curling up, and strength on this 2-hour chart is definitely and obviously building on the RSI. Higher lows on the RSI presaged a price turnaround, as it often does. Holding the current uptrend could give the market enough confidence to start buying this signal altcoin.
If Bitcoin’s price curls back down for a retracement, it will be up to ETH/BTC alone to keep Ether’s price above $295. The alternative – a capitulation through this critical level – is basically unthinkable.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.