After the storm, the sun for cryptocurrencies?- The year 2023 is currently marked by a clear revival of form on the side of cryptocurrencies. Indeed, the Bitcoin is up 15%, and Ethereum shows an increase of 20%. Of course, the year has only just begun, so don’t get carried away too quickly. Are altcoins showing encouraging signals? Is Ethereum finally changing momentum? Let’s look at the clues left by the charts.
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Ethereum fees plummet in 2022
While 2021 was marked by very high transaction fees on the Ethereum side (ETH), the year 2022 saw a fall in transaction fees. L’crypto winter in full swing, and this is certainly the main reason for this fall:
At the start of 2022, transaction fees were above $30they are today between $2 and $3. A drop reminiscent of –unfortunately – the course of Ethereum, but which this time benefits the operators. Take advantage of it, the situation could quickly change in the event of a return to the rise in cryptocurrencies!
Ethereum turns bullish again in the short term
The course of the second capitalization of cryptocurrencies has changed its momentum in a three-day time unit. Indeed, the price closed above $1,350 :
Ethereum price is in a weekly range between $1,000 and $1,900. This fence above $1,350 allows the price to change dynamics, but it remains stuck in this range for the moment. In addition, the price went back above the intermediate zone of the range located at $1,250.
On the other hand, the price always evolves under a bearish trendlinethe course could be rejected here. To get out of this range, buyers will have to overcome this trendline, and resume the resistance at $1,900. A weekly close greater than $2,030 would find a bullish momentum.
Momentum is whatever it is bullish, it continues to show bottoms and ascending tops. Also, the RSI tries to break out of the contractiona powerful movement could arrive in case of development above 59 of RSI. Ethereum is again solid against the dollar, what about against Bitcoin?
Bullish signal for Ethereum against Bitcoin
To study the strength of Ethereum against Bitcoin is to have altcoin informationbecause Ethereum is the altcoin leader. The ETH/BTC pair change of dynamic for the happiness of altcoin lovers:
In unit time, three days, the ETH/BTC pair becomes bullish short term. However, we must not forget that the course is stuck in a weekly range. The course seems well on its way to breaking the weekly resistance at 0.08 BTCbut it remains to confirm (green arrow scenario). For this, the buyers will have to push to bring the price beyond the resistance, and continue to show bottoms and rising tops thereafter. This scenario remains possible as long as buyers hold the latest low at 0.065 BTC.
The RSI broke the bearish trendlineand the short-term dynamic is bullish. We will have to continue to see the RSI develop upwards to remain optimistic on the price. First, the RSI must close above 62 to continue the momentum.
Bitcoin dominance falls
For a few days, Bitcoin dominance falls. Despite the recent shift in momentum, Bitcoin dominance is falling below 42% :
The fence above 42% allowed the course to change dynamics on a weekly basis. However, dominance is falling. the institutional bias remains on the upside, it is not impossible for the price to rebound from here. The momentum remains bullishthe RSI retains the bullish trendline for the moment. As long as this is the case, the price can develop higher. On the other hand, if the RSI breaks this trendline, it would be a bearish signal for Bitcoin dominance.
If we now look at the Ethereum dominancethe price is at the level of a resistance important:
We notice that the dominance of Ethereum evolves around 20%. Historically, this level has rejected the price, and cryptocurrencies have experienced significant falls. There is therefore a risk short term for cryptocurrencies. However, by dint of being tested, a level of support or resistance becomes fragile. Sooner or later, this resistance may well give way, and this should allow Ethereum to continue in its bullish momentum since 2020. If this resistance breaks, altcoins could also benefit.
It is hard to imagine Ethereum and altcoins experiencing a altseason here, a rejection seems more likely given the macroeconomic situation. However, sometimes the market has surprises in store for us. You have to be ready for all scenarios.
Altcoin capitalization rebounds
For about two weeks now, the capitalization of altcoins has been in the process of bounce. the support at 440 billion dollars held :
Since support which allowed a rebound, the price is up by 15%. Attention, the dynamic remains bearish for the moment, the price remains below $495 billion. A change of dynamic is essential in this unit of time to avoid a new wave of decline on altcoins. If the buyers manage to recover the resistance at $480 billionthe price could quickly reach the bearish trendline initiated in November 2021. Once arrived between the bearish trendline and the weekly resistance, the price could well slow down and take a break.
On the other hand, if the sellers show up and manage to push the price below the last low, a fall could take place. The next support it is located at $330 billion.
Transaction fees are relatively low at the moment, cryptocurrencies have experienced a sharp decline in attractiveness in 2022. From a technical point of view, Ethereum is changing momentum and returning to bullishness in the short term. However, the price remains in a range between $1,000 and $1,900. It will be necessary to get out of this range to find a real upward momentum on the second capitalization. Attention, the dominance of Ethereum is at the level of an important resistance. Historically this resistance level has preceded strong falls, hopefully this time is different. For its part, the capitalization of altcoins is rebounding, it remains to be confirmed by developing above the resistance at $480 billion. L’year 2022 was catastrophic for cryptocurrencies, Could the year 2023 be equivalent to the year 2019? As a reminder, Ethereum had climbed 160% before returning to its levels at the start of the year.
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