Bitcoin consolidation would allow Ethereum to double bottom on its BTC pair and possibly break the upward channel on its USDT pair.
Last week, Altcoin prices received a significant cut, and investors who had little interest in Bitcoin (BTC) saw the value of their portfolio affected.
Initially, Ether’s (ETH) price followed Bitcoin higher as the higher rated digital asset broke through the USD 12,000 resistance, but as BTC continued to climb slowly, Ether struggled to convert the USD 400 into support.
Ether’s loss of momentum and correction in the altcoins has led several cryptomoney traders to tweet that the altcoin season is over and many are citing the bearish price action in the ETH/BTC pair as evidence of this view.
Looking at the weekly ETH/BTC chart, traders will notice that the pair is about to fall below the rising trend line and the high volume VPVR node at 0.027294 satoshis.
Losing this level opens the door to a further drop to 0.024519 satoshis and below this Ether is approaching yearly lows near 0.0160 satoshis.
In the daily time frame, we can see that losing the support of 0.032385 satoshis pushes the price of Ether into the VPVR gap from 0.032385 satoshis to 0.029536 satoshis.
It appears that the bleeding will continue until the price reaches the 0.029536 satoshis level but the current daily candlestick is beginning to form what appears to be a double bottom and there appears to be an oversold rebound as the RSI is rising from 28 in the daily time period.
The signal line and MACD of the moving average divergence/convergence indicator are still in sharp decline and the absence of a large volume buy decreases the possibility of a short term trend reversal.
Perhaps if the Crypto Comeback Pro Bitcoin price were to enter a period of consolidation over the next few days, the ETH/BTC pair could regain some lost ground, but this seems unlikely at this time.
There is hope for the ETH/USDT
The ETH/USDT pair looks somewhat different as the pair continues to reach higher daily lows and the price action follows the upward channel support and resistance trend lines.
Channel support is running along with the 100-day moving average and once Ether is able to hold the $400 support, the $405 and $417 are the next hurdles to be cleared.
The price action within the upward channels is fairly easy to track and the 4 hour chart shows the MACD converging to the signal line as the sell off and the RSI rising towards 45.
In the short term, a move towards the middle line of the upward channel at $400 seems likely, but traders still expect this level to be a strong resistance. A short term move towards the middle line of the up channel at USD 400 seems likely but traders still expect this level to be a strong resistance.
If Ether’s price falls below the 100 moving average and exits the up channel there is support at USD 353, USD 330 and USD 315. Losing these levels means that traders can look for a more pronounced drop to USD 248.