As Bitcoin (BTC) is threatening to tumble below $10,000 at time of writing, Ethereum (ETH) has had its own headaches of late. The leading altcoin has fallen over 40% from local USD-denominated highs in the past month, and breached a two year support zone on its ETH/BTC pair which some have called Ether’s “capitulation.”
You know it's bad when you have to pull out the Bittrex charts to find your support levels.#altcoins #crypto
— Chase_NL (@Chase_NL) July 10, 2019
ETH is now well below this support zone on its ETH/BTC chart. We briefly review the scene on the giant Bittrex monthly chart.
We can see that over two years of support finally gave way this month. The first expected resistance, at around ₿0.022, is the area we will focus on now – and determine if it is actually the case.
On the daily, we get a much closer view of the subject area. We may hope that it is no coincidence that significant support has come in precisely at the critical line – ₿0.021874 – from the previous chart, to prop up today’s daily candle.
We note that today’s daily volume, just over half done at time of writing, is likely to surpass the previous day’s. Buyers seem serious about this particular line, and it will be interesting indeed if Ether can close in this aspect, above ₿0.0218.
Getting further into the weeds, on the 4-hour chart, we see some paltry signs of bullishness – but not really enough. All of the moving averages have been left in the dust. Volume on the “defense wick” was fine enough, but there has been little buying strength since then to exact a counter-rally.
On the indicators, there is a faint RSI divergence with the respective price troughs. Histogram seems to be turning around, and the MACD moving averages are contracting well and possibly signal a bullish cross sometime soon.
But there isn’t enough here yet to encourage a low-risk trade. This is knife-catching. As stated above, a daily close above the critical mark may be the first signal for buyers to start dipping their toes in.
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