Ethereum: the prince of cryptocurrencies in danger below $1,250?


Could Ethereum drop below $1,000? – The end of the year is approaching, and Ethereum is getting dangerously close to the support at $1,000. Bitcoin, for its part, has already marked a new low for a few weeks. Is Ethereum showing strength and carrying the cryptocurrency market? Or is it a trap, and altcoins will soon sink? Let’s take stock of the Ethereum situation!

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Ethereum Weekly Analysis: Fragile Below $1,900

Ethereum (ETH) has not marked a new low since last June. Despite the situation of crisis on cryptocurrencies, the eternal second capitalization holds up. However, as long as the price of ETH evolves under $1,900sellers can regain control:

Ethereum price against the dollar (1W)

The threshold at $1,900 is a key area for Ethereum. Indeed, this zone had allowed the price to rebound in May 2021 and post a new all-time high. In June 2022, the price fell below $1,900 and this area then has rejected the lesson. the institutional bias (EMA 9/ EMA 18) is bearish since the end of January 2022 and pushes the price back with each return between the EMAs. We will find Ethereum bullish when these EMAs are bullish and that they will act as support. Furthermore, it will also be necessary to exceed the bearish trendline set up from the top at the end of 2021.

For buyers, it is absolutely necessary to hold the last low of June 2022. If this low is defended, and buyers manage to change their momentum, the asset could regain strength. buying force. For this, it will be necessary to mark a summit higher than the previous one located at $1,680. Weekly momentum is on the other side of the line bearish trendline, it will now be necessary to show a clear bullish momentum. For the moment, the momentum is struggling to overcome 47 of RSI.

Resistance at $1,250 for Ethereum daily

Ethereum is possibly in a tidy Between $1,000 and $1,900. As long as the price moves below $1,250the sellers have the hand:

Ethereum is fragile under $1,250.
Ethereum price against the dollar (1D)

Ethereum had changed momentum following the breakout, from above, of the zone at $1,250. This change in dynamic had enabled the course to return to $2,000but the resistance finally held. Then, this same zone had allowed a bounce end of September. Recently, the sellers managed to push the price below $1,250and as long as the price moves below this resistancethe price will be brittle. If buyers fail to cross this threshold, the price could return to the $1,000 bracket.

In case of return to $1,000buyers will have to defend the lows to avoid a new disaster scenario. If the support gives way, the price could fall towards $800then $500. If these bearish scenarios fall into place, altcoins would follow, and stronger.

the stochastic is back in the oversold zoneit will be necessary to be attentive to all differences to talk about bearish excess.

Ethereum against Bitcoin: the weekly situation

It has been more than a year since the two behemoths of the cryptocurrency market have neutralized each other. Despite the event The MergeEthereum failed to rebound in uptrend against Bitcoin on a weekly basis:

The ETH/BTC pair is in a range.
Ethereum price against Bitcoin (1W)

Ethereum has the possibility of regaining control in the medium term by bouncing here, and breaking the resistance permanently. the institutional bias is positioned upwards, a bounce here seems possible. On the other hand, if the sellers push and manage to push the price below the support and under the bearish trendlinethen the price could dangerously return to the bottom of the range.

The momentum is brittle weekly. As we can see, the RSI evolves under the bearish trendline and this one rejects every return for the moment. It will be necessary to break this trendline to regain buying strength.

On a daily basis, Ethereum must go above the bearish trendline :

In the short term, Ethereum may return to the support level.
Price of Ethereum against Bitcoin (1D)

Institutional bias could make resistance in the short term, and bring the price back to the level of the support. In the event of a break of the support, the price would face a new resistance. It is absolutely necessary to keep the support and break the bearish trendline installed since September.

Momentum is rebounding at a support areayou have to build momentum with bottoms and tops rising to show a bullish momentum clear.

Bitcoin dominance continues to fall

The dominance of Bitcoin continues its fall at the end of 2022. Recently, dominance has been rejected at the level of institutional bias :

Bitcoin dominance is falling.
Bitcoin dominance chart (3D)

Dominance is found in a tidy Between 48% and 40% since May 2021. At the moment, no decision has been made on this chart. A return under 40% is possible, plus one support is touched, and the more it is brittle. It will be necessary to mark a new low to confirm the bearish momentum medium term. However, in times of bearmarket, hard to imagine capital moving massively towards altcoins. However, anything is possible.

In the case where the dominance bouncesand fence above 42%, capital could flow into Bitcoin for some time. Given the current momentum in Bitcoin, altcoins could suffer.

Ethereum remains strong, as it still hasn’t made another low since June. On the other hand, the price is still below the $1,900 zone and, now, below $1,250. In the short term, the buyers’ objective is to get back above this key zone. Against Bitcoin, Ethereum may rebound, buyers can take advantage. Bitcoin’s dominance has recently fallen, but it is now at an important support level. In the midst of the bearmarket, it seems impossible to see dominance continue to fall, but cryptocurrencies are sometimes amazing…

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