Ethereum Could Fall Below $1,000- New Wave of Altcoin Drops?

Altcoins ready to sink?– The sector of exchange token becomes feverish, Bitcoin attracts capital. Indeed, Coinbase is making new all-time lows, and the Binance Coin is close to the weekly support at $215. What about Ethereum and altcoins? Do they have the possibility of resuming the path of the rise, or are they close to the precipice? Let’s look at the clues left by the graphs!

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Ethereum weekly: target breakout of $1,350

Like the token exchange sector, Ethereum remains solid despite the context of bearmarket. Indeed, Bitcoin marked a new low in June, while Ethereum continues to move above the last low located at $877. Buyers need to regain control quickly to avoid slipping below the latter low:

Ethereum has the ability to change momentum on a weekly basis.
Ethereum price against the dollar (1W)

For the moment, the course is blocked between $1,000 and $1,900. the institutional bias is on the downside, and continues to push every move back to the moving averages. Also, the price evolves under the intermediate resistance at $1,430, it will be necessary to go back above to show a little buying force. Concretely, the buyers have the possibility of changing momentum by marking a close higher than $1,350. If this scenario occurs, the resistance at $1,430 could give way, and the price could join the next resistance at $1,900.

The real bullish signal will be put in place in the event of a break in the resistance at $1,900 and a fence above $2,000. A new return to the level of $1000 weekly support would be a bad omen, because the support could become fragile. The momentum remains stuck under a resistance and under the bearish trendline. It will be necessary to overcome this dual resistance to hope to have sufficient energy to resume a bullish momentum.

Ethereum: new drop coming for the ETH/BTC pair?

From The Merge, Ethereum slows against Bitcoin. The ETH/BTC pair seems to be weakening:

The ETH/BTC pair seems to be weakening.
Price of Ethereum against Bitcoin (3D)

The price gets stuck at the level of the bearish trendlinethis resistance has been around since The Merge event. Recently, the price even fell below the institutional biasa return to the level of intermediate rack support seems to be looming (red arrow). If the buyers manage to break the bearish trendline, it will also be necessary to break the resistance of the range. A breakout of the range from above would be very positive for altcoins.

At the momentum level, the bearish trendline hold on. Each return to its level is rejected for the moment, it will be necessary to break this resistance to have the necessary strength to break the range.

Bitcoin dominance on the rise

Here is a new graph that shows that the Bitcoin regains strength within the cryptocurrency market. Generally this is not not a good sign for altcoins :

Bitcoin dominance is on the rise.
Bitcoin dominance chart (3D)

Very often when the Bitcoin dominance falls, altcoins take advantage. This was the case for example from January to May 2021, but also from July to September 2021. Indeed, from January to May 2021, Bitcoin went from $30,000 to $60,000. The period from July to September 2021 saw Bitcoin climb by $30,000 to $69,000. At the same time, altcoins have benefited, like Ethereum which has been able to rise to $4,800.

On the other hand, when Bitcoin dominance is on the rise, altcoins are struggling to perform. We can take as an example the period between May and July 2021, or between January and June 2022. In the first case, Ethereum went from $4,350 to $1,700and in the second case, $4,800 to $880.

From this finding, we want to avoid being too exposed to altcoins in times of rising Bitcoin dominance. At the end of 2022, Bitcoin dominance seems to be on the rise again. Indeed, the price is very close to closing above 42%. If the price closes above 42%the dynamics would become bullish within this range, and the dominance could reach the top of the range. As seen above, altcoins could initiate a new bearish wave.

The RSI broke its bearish trendlineand the dynamic is again bullish. All the elements seem to converge towards a further rise in bitcoin dominance.

Buyers must react quickly for altcoins

As we have seen, altcoins could experience a new wave of declineand the altcoin capitalization chart is not comforting:

The capitalization of altcoins is on the precipice.
Altcoin Cap Chart (3D)

The course is in downtrendand it is currently slipping dangerously under the weekly support at $470 billion. Moreover, the institutional bias makes resistance for the moment. To try to avoid a new wave of declines on altcoins, it would be necessary to close above $495 billion. This level would change dynamics and, thus, to keep the support at 470 billion dollars.

If Bitcoin falls and altcoins follow, the next support is found at $325 billioni.e. a drop of approximately 25% additional. The RSI is on a support areahope this allows a bounce. It will be necessary to exceed 44 of RSI, then 59 of RSI to regain buying strength on the altcoin side.

Ethereum Still moving above the last June low. A close above $1,350 would allow the momentum to change, and perhaps, the Ether wedge to be able to find the resistance level at $1,900. Altcoins look feverish, charts of bitcoin dominance and altcoin capitalization do not allow for optimism. Bitcoin dominance is finding its way back up, and a shift in momentum is just around the corner. As we have seen, bullish momentum on this chart is often a bad omen for altcoins. Also, the capitalization of altcoins is very close to a new low, buyers must react quickly. If the sellers prevail, a fall of 25% additional is to be expected for the capitalization of altcoins.

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Last Verdict

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