Markets, both crypto and traditional, are surging today on the inevitable relief rally following last week’s collapses. Ethereum (ETH) has joined this rally on its USD trading pair, due to the inflationary effect of Bitcoin (BTC); but on its ETH/Bitcoin pairing, we are seeing sharp selling and no success in developing a foothold position.
We start on the 4-hour ETH/Dollar chart, and see that the present surge has just engaged the first significant resistance level from 2019 – and been squarely rejected so far.
We do not see a lot of volume coming in on this LTF uptrend (Gemini), and we can probably anticipate a healthy sell pressure as price moves higher: many investors and traders are surely still underwater after last week’s record-setting price drop.
Moving to the ETH/Bitcoin chart, we see an even less generous outlook. Price here is stuck under ₿0.0225, with every attempt to gain a foothold in the first resistance zone immediately sold off with deep sell wicks.
Price is absolutely stuck under the 8 EMA, and the downtrend looks nowhere challenged here. We do see the RSI trend still intact; however, the histogram already looks like it is shedding momentum and resuming a bearish expansion to the downside.
Finally, on the daily ETH/Bitcoin chart, we see two levels that are important to Ethereum – at least one of which we would like to see retaken this week as a show of strength.
Price is dancing around the 21-week EMA, and closing below here for the week would be quite bearish. Assuming price can get above here, the next important level is the ‘Captiluation Line’, Ethereum’s most important level of 2019. Closing the week above this level, which was lost last week, may give the market a lot of confidence that Ethereum may not do too badly in the coming months.
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