Ethereum
Ethereum price ascending channel breakout possible if Bitcoin consolidates
In the past week, altcoins prices received a significant haircut, and investors who were light on Bitcoin (BTC) saw their portfolio value take a hit.
Initially, Ether (ETH) price followed Bitcoin higher as the top-ranked digital asset rallied through the $12,000 resistance but as BTC continues to slowly push higher Ether struggled to flip $400 to support.
Ether’s loss of momentum and the correction in altcoins has led to a number of crypto traders tweeting that altcoin season is done and many are citing the bearish price action in the ETH/BTC pair as evidence for this point of view.
Looking at the ETH/BTC weekly chart, traders will notice that the pair is on the verge of dropping below the ascending trendline and high volume VPVR node at 0.027294 sats.
Losing this level opens the door for a further decline to 0.024519 sats and below this Ether is approaching yearly lows near 0.0160 sats.
On the daily timeframe, we can see that losing the 0.032385 sats support thrust Ether price into the VPVR gap from 0.032385 sats to 0.029536 sats.
The bleeding looks set to continue until the price reaches the 0.029536 sats level, but the current daily candle is beginning to form what looks like a double bottom and there appears to be an oversold bounce taking place as the RSI is rising from 28 on the daily timeframe.
The signal line and MACD of the moving average convergence divergence indicator are still in steep decline and the absence of strong buy volume decreases the chance that short-term trend-reversal is in the making.
Perhaps if Bitcoin price entered a period of consolidation for the next few days the ETH/BTC pair could recover some lost ground but this seems unlikely at the moment.
There’s hope in the ETH/USDT pair
The ETH/USDT pair paints something of a different picture as the pair continues to make daily higher lows and the price action is following the support and resistance trendlines of the ascending channel.
The channel support rides alongside the 100-day moving average and once Ether is able to hold $400 as support $405 and $417 are the next hurdles the altcoin must overcome.
The price action within ascending channels is pretty easy to track and the 4-hour chart shows the MACD converging with the signal line as the selling tapers off and the RSI is rising toward 45.
Over the short-term, a move to the ascending channel midline at $400 seems probable but traders still expect this level to be stiff resistance. A bullish breakout from the ascending channel ($430) could enable Ether to chase after the $468.
If Ether price drops below the 100-MA and falls from the ascending channel there is support at $353, $330, and $315. Losing these levels means traders can look for a sharper drop to $248.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Bitcoin (BTC) fell below $26,000 on Dec. 29 as fresh fallout from Ripple’s threatened U.S. lawsuit was felt throughout crypto markets.
BTC price dips as Coinbase halts XRP trading
Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD hitting lows of $25,830 during Tuesday trading.
$27,000 support failed to hold overnight, sparking a retest of lower levels which now center on $26,000. At the weekend, Bitcoin hit all-time highs of $28,400 before swiftly reversing.
The latest losses come as XRP, the fourth-largest cryptocurrency by market cap, hits $0.23 thanks to major U.S. exchange Coinbase opting to suspend trading from next month. The reason is a lawsuit from the U.S. Securities and Exchange Commission (SEC), which threatens to classify XRP as an unlicensed security and make trading it all but impossible.
“There is going to be a rangebound construction, after which 2021 will most likely break out again,” Cointelegraph Markets analyst Michaël van de Poppe summarized about Bitcoin’s short-term perspectives in a video update on Monday.
Analyst braced for altseason
Van de Poppe is eyeing altcoins as next in line to see major gains. XRP notwithstanding, the market is already showing signs of life, with Ether (ETH) climbing above $700 for the first time since May 2018 this week.
Another winner on Tuesday was Polkadot (DOT), now the seventh-largest token by market cap, which saw a 22.5% daily rise, capping weekly performance of nearly 34%.
For Van de Poppe, the next “impulse wave” on Bitcoin in 2021 should take the market to $40,000 or $50,000, but “until then, altcoins will most likely do well.”
He additionally pointed to a likely top in Bitcoin market cap dominance, which at almost 70% should soon give way to altcoin presence. December tends to see BTC dominance peaks, with 2017, the time of Bitcoin’s first attempt to crack $20,000, a notable comparison.
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