ETH’s Correction May Already Be Over, As Important Levels Held — Price Analysis

  • LTF (Low timeframe) trend: No trend, sideways
  • MTF trend: Still in a corrective downtrend
  • HTF trend: A strong uptrend obtains

Ethereum (ETH) is holding up very well against Bitcoin (BTC) amid a general atmosphere of gloom across both crypto and traditional markets. It is holding some important levels, and every week that goes by returns ETH to a market performance not seen in years.

We start with the daily ETH/Bitcoin chart, and the main hanging question is: is this MTF downtrend/correction over with? There is enough ink on the chart to paint a complete ABC correction into the first main Fibonacci target, at .382; this means there is plenty more room for a downtrend to continue, with ₿0.0233 level being especially important to hold.

This would be a shallow correctionETH chart by TradingView

But we have seen two candle closes above the 21 EMA, and if this continues we might start to see some consolidation at this level.

Coming to the weekly ETH/Bitcoin chart, we first note that the 55 EMA has been held two weeks in a row. Closing the third week in a row would be a very important milestone for Ethereum, as this has not occurred since June of 2018.

Can it hold again?ETH chart by TradingView

Finally, on the 4-hour ETH/Bitcoin chart, we don’t really see a very compelling profile for a bottom yet. A tiny bull divergence was more visible on the 1- or 2- hour charts than here, and the EMAs have rejected price on the first attempt up. The histogram also seems to be getting bogged down here, and may need to take another, shorter trip into negative territory in order for downside momentum to be bled off.

This doesn't look like a strong bottom, yetETH chart by TradingView

Ethereum has been performing far better than Bitcoin lately, and by some measures is much further away from the limits of the HTF uptrend than the leading crypto. There is nothing yet on the charts to negate that narrative, and if the weekly closes well, it will look even more bullish.

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