The price of Bitcoin (BTC) hit a new all-time high above $ 60,000 over the weekend. That doesn’t apply to Ether (ETH) however, and the market generally didn’t show much strength for continuation after that. As a result, the BTC price has fallen 7% in the past 24 hours.
During this retreat, ETH also fell in its US dollar pair. However, the ETH / BTC pair actually saw an upswing. It could be the case that altcoins are trying to stabilize against BTC while Bitcoin is reducing some of its massive weekend profits. Interestingly, could this be a prelude to a potentially massive rally for Ether later this year? Let’s take a look at the charts.
Ether can’t break above $ 1,900
Ether failed to break through $ 1,900 on March 13, which is essentially the final hurdle before hitting the psychological barrier of $ 2,000. The entire market is waiting for a clear break above $ 2,000, and it looks like it will have to wait a little longer.
Nice support / resistance flips for more upside have been seen since the bottom at $ 1,300. The final support / resistance flip occurred at the $ 1,740 level, causing a rally towards the $ 1,900 level.
However, the price of Ether fell back to that level of $ 1,740 pretty quickly. Such a dropdown is a sign of weakness, especially as multiple tests of key support levels increase the risk of another fall.
In other words, if the price of Ether fails to hold the $ 1,740 area, the market should expect another leg towards the $ 1,500 level.
ETH / BTC holds on
Fortunately for the bulls, the ETH / BTC pair held up well on this recent drop in BTC price, finding support in the Sats 0.029-0.031 region. However, if that support zone is lost, the next support will be in the Sats region from 0.025 to 0.0275. This level in particular is critical to sustain the current bull market cycle.
In the meantime, the graph shows that altcoins are not increasing all the time. They often experience strong corrections, and ETH / BTC has been in correction mode since February.
Even so, the construction itself remains intact and valid, with higher lows and higher highs being printed all the time.
The chart for ETH / BTC continues to look optimistic. The consistently higher lows have been in play since summer 2019, which triggered a general upward trend.
Such upward trends have periods of consolidation. However, as long as the structure of higher lows is maintained, the bullish structure remains valid. It is therefore important to observe the regions discussed earlier, namely the range between 0.025 sats and 0.0275 sats.
A strong boost is likely to kick in for Ether once Ethereum 2.0 is closer to its release date, which should help solve some of the scaling issues and high transaction costs. Until then, the FUD (fear, uncertainty, and doubt) and negativity associated with the project are likely to remain.
However, traders should be aware that times of negative market sentiment are usually the best time to enter the market rather than entering or entering the market when the market is overheated.
One possible scenario for the Ether price
The critical ranges for Ether are now between $ 1,700 and $ 1,740. Tests of the above resistance levels should be done while this support area remains below. The key resistance to breaks, however, is the $ 1,830-1,860 level.
However, in the short term, it is unlikely to cross the $ 1,830-1,860 level as market sentiment has changed in the past few days. If resistance here is confirmed, Ether could face another correction towards USD 1,500.
The next big wave of impulses could occur as soon as this phase of consolidation and compression is complete. This impulse wave should drive Ether well over $ 2,000. However, patience is key, and investors should understand that developments, both fundamentally and in terms of price, take time.
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