Sellers don’t give up- THE Bitcoin started a significant upward movementthe day of February 15 (+9%), but it blocks at the level of the resistance at $25,000. For’Etherit’s here resistance at $1,680 who holds the course for the moment. Cryptocurrencies are off to a positive start to the year, and the trend could continue. Some altcoins manage to appreciate. This is the case ofB OK, for example, but most struggle to outperform Bitcoin. Are whales back on Ethereum? What are the objectives on the buyer side? Could the price rebound in the short term? We look at the clues left by the graphs!
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The whales back on Ethereum?
Whales are entities with more than 1,000 BTC. However, for Ethereum which has a lower capitalization, it is interesting to look at the entities with more than 10,000 ETH. It is interesting to look at the movement of large portfolios, because they are the ones that move the market.
We notice that the whales bought from November 2022. Then they took profits up to around $1,600. It looks like they are getting back on the train. Indeed, since the beginning of February, the number ofaddresses with more than 10,000 ETH in portfolio is increasing. The current momentum seems to suit large portfolios who will likely want to sell as soon as there is some euphoria from the smaller fish. Let’s take a look at the key levels on Ethereum’s price.
Sellers at resistance at $1,680
Despite the upward movement of BitcoinEther cannot cross the weekly resistance. We see it thanks to the wicks left at the level of the resistance. Vendors are present.
To rekindle the momentum, the price needed to close above $1,700. For the moment, the sellers are present and prevent the course from flying. This is a significant resistance with the presence of the bearish trendline. As long as the course will be under the bearish trendline, it will remain fragile.
THE institutional bias (EMA 8/EMA 18) served as support. Buyers must now push to break out of this resistance zone. In the event of a breakout, the price could head towards the next resistance at $1,900, then that at $2,400 (green arrow). However, if the sellers prevail, the price will once again head towards the level of the 9 and 18 moving averages. In the event of a double top, the price could even fall to the support at 1250 dollars.
The momentum is always above the bearish trendline. The bullish momentum could continue. We must continue to observe bottoms and rising tops on this indicator. Now let’s look at the shorter term chart.
There last week, there was talk of a return to the resistance level at $1,640. The price even broke this resistance. However, Ethereum failed to close above the latest high at $1,725. We see it : actors took profits on this area. Now the level at $1,640 must act as support to relaunch the bullish momentum in 4H. Also, the price is at the level of the institutional bias pointing upwards. This one is doing support. If rejected, the price could once again head towards the support at $1,500.
Momentum is moving above the bearish trendline. Once the trendline was broken, the price experienced a strong upward movement. We must continue to show bottoms and rising tops on this indicator.
Ethereum and Bitcoin: the battle continues
Bitcoin and Ethereum are the two cryptocurrencies with the highest capitalization. When Ether outperforms Bitcoin, altcoins take the opportunity to express themselves. However, when Bitcoin attracts capital, altcoins find it harder to express themselves. Since May 2021, the price of the ETH/BTC pair is in a range between 0.08 BTC and 0.06 BTC. Also, for a few months, the pair has been holding between 0.079 BTC and 0.065 BTC.
The price of the pair does not give no clear direction in the medium term, nor in the short term. To know the direction of the pair, we will have to wait for a decision. here are the two key levels :
- 0.079 BTC : the pair would choose the bullish direction. Altcoins could benefit from Ethereum’s outperformance against Bitcoin.
- 0.065 BTC : a breakout of this level would be negative for altcoins. The price could then head down the range at 0.06 BTC. However, the price would still be in a weekly range.
To relaunch a bullish momentum as we experienced in 2021, it will be necessary to get rid of this weekly resistance which has held since May 2021.
The RSI remains fragile. He’s stuck under the bearish trendline. Momentum has the possibility to turn bullish again with a close above 50 RSI. A close like this would allow to resume a bullish momentum and move above the bearish trendline.
Bitcoin dominance rebounds: danger for altcoins?
Bitcoin attracts capital since the end of 2022. The dominance of Bitcoin is currently stuck at the level of the 44% resistance.
Recently, the course has bounced back the level of institutional bias. In the event of a close above 44.8%, the dominance could then join the weekly resistance at 47% (green arrow). If a double top appeared, the momentum would change, and price could once again head down the 40% range. The price is currently blocked at the level of the resistance, but the momentum remains bullish. The probabilities are oriented towards a return to the level of the top of the range.
On his side, momentum is bullish. The RSI is still above the bullish trendline.
Altcoin capitalization rebounds
The capitalization of altcoins has rebounded at the level of the support at 440 billion dollars. She heads for the weekly resistance.
The course broke the bearish trendline initiated in August 2022. It is heading towards the next bearish trendline. It’s about a strong resistance, because she has already postponed the course several times. There capitalization altcoins could soon reach the weekly resistance at $670 billion. Altcoin buyers could take profits at this level. In the event of a drop, the level at $480 billion could serve as support.
The momentum is bullish. It is moving above the 57 RSI zone. The RSI should continue to move above this area and show ascending lows and highs. To start, it will be necessary to close above 66 of RSI.
The whales are back and seem to continue the accumulation initiated in November 2022. The price of Ethereum is moving up, but the resistance at $1,680 rejects the course at this time. It will be necessary to get rid of this resistance to find colors on this asset. On a bounce, the next resistance is found at $1,900. The price might even head towards the important resistance at $2,400. Bitcoin continues to attract capital. Altcoins might suffer at first. But if the price of Bitcoin continues to rise, the altcoins could benefit from capital rotation. The capitalization of altcoins is rebounding. I’buyer’s goal is a return to the level of weekly resistance at $670 billion.
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