In early September, Ethereum (ETH) reversed from a downtrend, at the end of what many considered to be a price capitulation into levels not seen since 2017. The leading altcoin went on to log some healthy gains during September; but now, it’s having real trouble getting over a knot of thick support. If it can’t, there is a chance of losing the new uptrend and revisiting the lows.
We start on the daily ETH/BTC chart. The main area of resistance is approximately at ₿0.021-22, and we can see that ETH was violently rejected from this area when Bitcoin broke down last week. It retraced beyond the 0.618 Fibonacci mark, briefly, so deep that the uptrend may have been damaged. ETH has since regained all that price ground, but the buy volume is not keeping up with this recovery.
It is hard to say where momentum is at the moment with Ethereum. Bitcoin’s fall really put a damper on everything, including most of the recovering altcoins (and even on their BTC pairings!).
Looking at a 12-hour chart with indicators, we see a mixed picture. On the RSI, there is a hidden bull divergence suggesting a continuation of the trend (up); but there is also what looks like a bear divergence in the making, assuming that a top has been put in on the current low timeframe (LTF) cycle.
The histogram is currently flat, and looks like a soft breeze could blow it either way. We must note, though, that ETH is holding above all the EMAs on this timeframe.
And speaking of EMAs, if we go back to a daily ETH/BTC chart, we can see that the “fan” of common EMAs is very nearly opened up fully bullish. Once the 33 crosses the 55, we will have a fully opened EMA fan to the upside; which means ETH has to hold out here just a little longer to effect this bullish indication to the market.
Ethereum has come a really long way. The makings of a new uptrend were cut short by Bitcoin’s collapse last week. But with a falling Bitcoin dominance, it seems that altcoins may still have a chance to continue regaining some market share — if not USD valuation. And as usual, Ethereum will likely take the lead for the altcoin market.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
