Soaring channel breakout of Ethereum price possible if Bitcoin consolidates

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Over the past week, altcoins prices have taken a sharp discount, and investors who weren’t very familiar with 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 slowly pushed higher, Ether struggled to tip $ 400 in support.

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Weekly price chart for the crypto market. Source: Coin360

Ether’s loss of momentum and the correction in altcoins have led a number of crypto traders to tweet that the altcoin season is over, and many cite the bearish price movement in the ETH / BTC pair as evidence of this point of view.

ETH / BTC 1-week chart. Source: TradingView

On the ETH / BTC weekly chart, traders will find that the pair is about to drop below the ascending trendline and high volume VPVR node at 0.027294 sats.

Loss of this level opens the door for a further decline to 0.024519 sats and below this ether it approaches annual lows near 0.0160 sats.

ETH / BTC daily chart. Source: TradingView

In the daily timeframe, we can see that the loss of 0.032385 sats pushes the ether price into the VPVR gap from 0.032385 sats to 0.029536 sats.

The bleeding is expected to continue until the price hits the Sats level of 0.029536, but the current daily candle is starting to double-bottom and there appears to be an oversold rebound as the RSI climbs from 28 to daily Timeframe.

The signal line and MACD of the convergence divergence indicator for the moving average are still sharply declining, and the lack of strong buying volume reduces the likelihood of a short-term trend reversal.

If Bitcoin price entered a phase of consolidation in the next few days, the ETH / BTC pair could potentially lose some ground, but that seems unlikely at the moment.