Both Bitcoin (BTC) (see analysis here) and traditional markets got trashed last week, with the coronavirus blamed by most pundits for the steep selloff in equities. Ethereum (ETH), doubling back from its excellent bull run in early 2020, is holding up well in its retracement against Bitcoin.
Starting on the weekly ETH/Bitcoin chart, we see that the 55-week EMA was nearly held at yesterday’s weekly close. Although mildly disappointing, it didn’t miss the mark by much, and it was an exceptional feat in the first place to regain the level. The altcoin is still holding well within a significant support zone, and is nowhere near the even more important ‘Capitulation Line’.
The histogram is also holding up very well here, nearly plateauing at the top of its runup and looking quite stable so far.
Things also look good on the daily ETH/Bitcoin chart, with a bounce out of the .382 Fibonacci level a few days ago pushing the altcoin back above the 21 EMA where it has stayed.
The RSI looks stable here, although no bull divergences are visible at present; and the histogram definitely looks like momentum is reversing. Altogether, the ETH/Bitcoin chart is promising, and we can expect Ethereum to build healthy support around here.
How does this translate to the ETH/Dollar chart? Pretty well, and we see that the 55 EMA has been vigorously defended in the past few days. The histogram is even more clearly telegraphing that momentum is reversing to bullish at least in the LTF.
It is hard to get too gloomy about Ethereum, even if Bitcoin’s HTF uptrend is threatening to decay. Ethereum’s MTF downtrend has a good chance of holding above $210 by the looks of it, which would keep its HTF uptrend intact by a large margin. If nothing else, we are likely to see some decent LTF upside this week.
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