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Analysis - In my previous Bitcoin analysis, I've mentioned the importance of securing the 10.5k support - As we play by levels, today's break and close above the regional resistance provides a bullish signal for altcoins as well - In the case of Ethereum, we can see that prices are currently testing the long term support - Below current support levels marked by green, Ethereum has been consolidating for almost two years, leading up to the recent breakout - However, as Bitcoin corrected severely from 12k levels to 9k levels, Ethereum has formed a pullback as well, retesting support - The Relative Strength Index (RSI) continues to create higher lows as a sign of strength in the bullish trend - While the Moving Average Convergence Divergence (MACD) is about to form a death cross, confirmation is required, as the moving average could bounce. - Within the smaller Fibonacci retracment, prices are currently trading between the 0.236 resistance and 0.382 support - After a breakout of $400 levels, we could play by levels once again on the long term, based on the Fibonacci retracment price targets.
Conclusion While Ethereum is at a nebulous zone between support and resistance, Bitcoin's breakout today has confirmed a bullish case for the cryptocurrency market, providing more confidence in a long term position for Ethereum. While risk still exists, the upside potential for Ethereum on the long term remains extremely huge.