Ethereum (ETH) has exploded in the past couple of days, far outpacing the comparatively feeble Bitcoin (BTC) uptrend. And yesterday, it closed just under the so-called ‘Capitulation Line’, a very important level on the ETH chart. It has eked just over this level so far today, and holding it would be a huge accomplishment.
Starting on the ETH/Bitcoin daily, we see that this line perfectly held the altcoin yesterday, with a slight rejection just above it. The market is clearly aware of this level, which acted as a hard sell target for many.
We are currently seeing trading above this level, and holding it on today’s candle would be very bullish. However, even losing the level and consolidating somewhere near it would not exactly be bearish.
Just for context, we next see a weekly ETH/Bitcoin chart and the source of this ‘Capitulation Line’: when in 2019 Ethereum’s price capitulated through to lows now seen since 2017.
As we can see, there is plenty more resistance just above this level, with all of early 2019’s support level now acting as a thick knot of resistance. This is likely just the start of a long struggle – a struggle that seemed won a month or so ago.
Finally, we move to the daily ETH/Dollar chart and see that this move has translated very well into dollars, with Bitcoin likewise in an uptrend. Much of the lost value has been retaken, and price has shot above the 55 EMA.
We thus see a similar situation on both charts, with two different and important levels retaken. Holding one of them will likely mean holding both of them, and thus, today is a very high-stakes day for Ethereum’s market.
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