Return of the bearmarket for cryptocurrencies? – After experiencing a bullish start to the year, cryptocurrencies are showing fragility. Tonight, within minutes, 22 billion have evaporated in the cryptocurrency market. Indeed, Bitcoin was rejected at $25,000, and sellers are driving the price down below $22,000. For its part, Ethereum drops below $1,600. Should the trend established since the beginning of the year be called into question? Can Ethereum and altcoins rebound? Let’s look at the key technical levels for what happens next!
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Ethereum (ETH) Gets Rejected at the Resistance Level at $1,680
Ethereum analysis in three days
Ethereum (ETH) has been stuck at the resistance level at $1,680 for a few weeks. For the moment, sellers are making buyers bend:
The price is blocked at the level of the resistance at $1,680, but the situation remains encouraging. The institutional bias (EMA 9/EMA 18) is on the upside, it could serve as a dynamic support in the coming days. Also, for the moment, the bottoms and tops remain ascending on this asset. To maintain this momentum, we must keep the last low at $1,460. To relaunch the dynamic and break the resistance at $1,680the buyers are going to have to bend the sellers and cause the price to close above $1,740. A fence like this would probably make it possible to find the last high at $2,030.
The RSI is displaying a bearish divergence, it will be necessary to wait for confirmation when the candle closes. A divergence that would show that the movement is running out of steam, and that a range could be put in place.
Whatever happens, buyers will need to be able to close above $2,030 to find a bullish momentum weekly. As long as this is not the case, the price can return to the level of the supports located at $1,250 and to $1,000.
In the short term, ETH hangs at $1,650
In 4H time unit, sellers resisted at the level of the resistance at $1,650then the price fell:
The course failed to find a bullish momentum, the price failed at the resistance level. A rebound could occur at the level of the support located at $1,515 (green arrow). Whatever happens, it will be necessary to recover the level of resistance at $1,665and then the one at $1,725. If the sellers continue to control the price, the scenario materialized by the red arrow could be put in place. Thus, a return to $1,400 remains possible.
The momentum keeps the bullish trendline, a rebound could take place in the coming days. It will be necessary to keep a bullish momentum with troughs and rising peaks. Also, it will be necessary to break the resistance zone at 59 of RSI.
Could Ethereum outperform Bitcoin?
The ETH/BTC pair is in a tidy between 0.06 BTC And 0.08 BTC. Volatility on this pair is decreasing, price is contracting :
The price is trying to rebound, but it is currently at the level of the 9 and 18 moving averages, which are trending downwards. These could do resistance. If Ethereum buyers push, and the price closes above 0.0725 BTCthe price could reach the top of the range at 0.08 BTC. Ethereum being the leader of altcoins, altcoins could benefit from it. On the other hand, if the sellers show up, the intermediate range support could give wayand the price could return to the bottom of the range (red arrow scenario).
The RSI attempts a bounceand the break of the bearish trendline implementation in August 2022. For this, it will be necessary to develop above 50 of RSI.
The dominance of Bitcoin still between 43% and 45%
The dominance of Bitcoin remains undecided at this time. The course is at the level of institutional bias bullishA bounce could be set up:
The price is pausing after a rebound at the bottom of the range at 40% of dominance. For the moment, dominance blocks at the level of the 44% resistance of dominance. The dynamic remains bullish in the short term, as the lows and highs remain ascending. If the price exceeds 44.5%Then 44.8%the dynamic would be relaunched and the dominance could return to the level of the 47% resistance. This scenario would allow Bitcoin to attract capital, but altcoins would underperform Bitcoin.
Otherwise, if Bitcoin marks an “M top” at the level of the 44% resistance, altcoins could take advantage of this to outperform Bitcoin. This will require a fence below 43%and it would be necessary the institutional bias becomes bearish again.
Momentum is still globally bullishthere bullish trendline is retained for the time being. A rebound could occur in the coming days (green arrow). In the event of a break in the trendline, the upward movement could be called into question. It will be necessary to be attentive to a possible breakage.
Could the capitalization of altcoins rebound at the level of the institutional bias?
Despite the fall of this night, the trend remains bullish. Indeed, the troughs and peaks are ascending. A bounce could intervene at the level of the institutional bias, around $560 billion :
The situation remains encouraging on altcoins, as the 9 and 18 moving averages could support the price. In addition, for the moment, the price maintains the last low at $525 billion. In the event of a rebound, the price could reach the weekly resistance at $670 billion. On the other hand, in the event of a fall, the price could reach the support at 480 billion dollars.
Momentum may bounce off support around 57 of RSI. After spending more than a year below this zone, it would be interesting for altcoins to stay above it. For the moment, the RSI maintains a bullish momentum with troughs and rising peaks.
ETH is currently getting rejected at the resistance level at $1,680. To maintain bullish momentum, the price must hold the last low at $1,460, and close above $1,740. In the very short term, the price must resume the level at $1,650. The ETH/BTC pair is in a weekly range, volatility is falling, and price is contracting. Sooner or later, a decision will be made by the price, and the volatility will start to rise again. For altcoins, it would be interesting if the pair gets rid of the weekly resistance at 0.08 BTC. With the move overnight, the capitalization of altcoins has fallen, but it is at the level of the bullish institutional bias. A rebound could take place, and a return to the weekly resistance level at $670 billion remains possible. Despite this fall, altcoins have not said their last word.
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