Of the two leading cryptos Bitcoin (BTC) and Ethereum (ETH), ETH has come out in slightly better shape after this weekends rejection and resulting resumption of a MTF downtrend. The leading altcoin is now showing some positive signs on the chart, which may help it maintain its most critical levels in the coming weeks.
Going straight to the 4-hour ETH/Bitcoin chart, we see that a bullish divergence on the RSI has held in the last couple of days, following the precipitous drop. Price has generally been holding at local support (blue), and if it continues to hold anywhere within this area, we will probably see the RSI trendline maintained.
The histogram has also been contracting bullish steadily since the drop, and is now nearing the crossover. We might not get that today/immediately, but another, smaller expansion might see a cross effected.
On a larger ETH/Bitcoin chart, we see a less-good outlook for this pairing in the MTF. However, bearing this in mind, we have not even see any testing of important levels on this chart – most important of which is the ‘Capitulation Line’ from 2019. As long as that holds, ETH is in decent shape.
The RSI here still looks completely bearish or at best flat; and same goes for the histogram. Our best hope here is for some LTF strength to materialize and keep ETH going sideways on the MTF scale. Consolidating down at ₿0.024, at the .382 fibonacci level, wouldn’t be a bad thing if it comes to that.
Moving to a 2-day ETH/Dollar chart, we see that any Bitcoin-paired strength will be useful. ETH is now testing down near the ‘golden pocket’ fibonacci level, although it can still come down to about $160 if it really needs the room to retrace.
But that wouldn’t be ideal, and a consolidation above .618 would help us remain optimistic about EThereum in 2020 in spite of everything that’s happening.
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