Ethereum could have bottomed out. Will BTC now take the beating?
Back from the May 21, Ethereum has been taking a beating from Bitcoin. ETH price has been struggling big time. Since then, during the next 4 months Ethereum lost to Bitcoin 69% and bottomed out on the September 12.
By observing the bottom of the current downtrend, that is BTC 0.0268, Ethereum cleanly rejected the 927.2% Fibonacci retracement level. What is more interesting. The lower trendline of the extended descending channel was rejected right at the same time.
Such a «coincidence» could be interpreted by some as the very bottom of the downtrend. Yet, others might wait for higher trade volume along with the resistance breakout.
ETH/BTC continues to print lower lows and lower highs, thus validating the downtrend. But at the same time it found the support at BTC 0.030; not only it is a physiological level, but also a Fibonacci retracement support.
Currently, following the price action high be the way to go, as many altcoins, along with Ethereum, are at very low historical levels. As the crypto market is growing rapidly, the new wave of investors could be attracted by the «bargain» price.
All-in-all, while there is a good chance that Ethereum has finally fond the bottom, it is important to stay causes and the downtrend hasn’t been invalidated. Break above the BTC 0.034 might be the firs bull sign for ETH. Also, perhaps it is worth following the RSI for the break above the descending channel, or for a complete opposite scenario.
The trade volume is very low, and soon market could show a substantial increase in trade activity. Maybe that will be the time to take action?
By observing the bottom of the current downtrend, that is BTC 0.0268, Ethereum cleanly rejected the 927.2% Fibonacci retracement level. What is more interesting. The lower trendline of the extended descending channel was rejected right at the same time.
Such a «coincidence» could be interpreted by some as the very bottom of the downtrend. Yet, others might wait for higher trade volume along with the resistance breakout.
ETH/BTC continues to print lower lows and lower highs, thus validating the downtrend. But at the same time it found the support at BTC 0.030; not only it is a physiological level, but also a Fibonacci retracement support.
Currently, following the price action high be the way to go, as many altcoins, along with Ethereum, are at very low historical levels. As the crypto market is growing rapidly, the new wave of investors could be attracted by the «bargain» price.
All-in-all, while there is a good chance that Ethereum has finally fond the bottom, it is important to stay causes and the downtrend hasn’t been invalidated. Break above the BTC 0.034 might be the firs bull sign for ETH. Also, perhaps it is worth following the RSI for the break above the descending channel, or for a complete opposite scenario.
The trade volume is very low, and soon market could show a substantial increase in trade activity. Maybe that will be the time to take action?
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Still range trading