The crypto markets are burgeoning, as the market leader Bitcoin (BTC) has broken free from a major downtrending structure and needs but to confirm this break with a new leg up. The rest of the market has been responding, and we are starting to see major breakouts on leading altcoins. The biggest of all, Ethereum (ETH), has in the past 24 hours broken an important level of its own, and is looking very bullish.
We start on the ETH/USD daily, and note that a major breakout has already occurred yesterday from consolidation below $145. This movement came on good volume and blasted through a very critical level in ETH’s market, about $160, which makes up support from 2019 and, perhaps more importantly, the top of the late-2018 consolidation.
RSI has responded and is nearing overbought levels, although it’s not there yet technically speaking. The histogram profile has been ruptured and pushed deep into positive territory; and we should note anyway that the ETH/USD histogram here has been generally choppy.
On the ETH/BTC daily, we likewise see some very bullish action. We should note above all things that this trading pair has surged with Bitcoin rather than against it; whereas in late 2019 Ethereum had been dumping with any Bitcoin move (up or down). This is an extremely welcome sign for Ethereum, and suggests that the altcoin may have turned a corner.
Yesterday’s surge has come on the back of a sharp bull divergence on the RSI, and has pushed the histogram profile sharply up into a bullish contraction. Ethereum seems to be chewing at the resistance zone surrounding ₿0.019, and is so far holding the 55 EMA which it closed just below yesterday.
Even if it’s on fire, Ethereum/Bitcoin is still far away from one of the key levels on this chart: the “capitulation line” at ₿0.0231, which marked the point during 2019 when ETH lost a price floor that had held since mid-2017.
Finally, on the weekly ETH/BTC chart, we see bullish long term signs. Like on the daily, we see a double bottom with bullish RSI divergence. There is a healthy amount of volume in the week already, so we might give it a decent chance to close the week with higher volume. The histogram is looking excellent so far, looking like the beginning of a bullish contraction if it can close the week in such a configuration.
The EMAs looming above are going to present big hurdles to clear, especially the 21, which has held Ethereum since June of 2018(!).
Ethereum is looking very interesting, amid the general atmosphere of a bullish crypto market. If it continues to break levels, it could finally be time to start paying attention to Ethereum again.
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