Ethereum (ETH) is looking rather ambivalent at the moment, as Bitcoin (BTC) seems to finally be rolling over into a corrective period. As the leading altcoin, Ethereum typically signals the direction for the altcoin market in general, and we should look to the smart contract crypto’s behavior in the coming days for signs of a direction for altcoins.
Essentially, the ETH/BTC trading pair looks better than the ETH/USD pair – the latter of which has much to do with what Bitcoin does. Let’s start with USD.
Looking above, ETH has broken down from what had looked like an ascending triangle pattern, with the smart contract crypto dropping out of the pattern during Bitcoin’s selloff. Yesterday’s daily candle closed beneath this trendline, as well as the 21EMA trendline, which had been held throughout most of the recent uptrend in the crypto markets.
Selling volume is outpacing buying volume, and is generally low. Today’s daily candle close will be important: closing above the 21EMA and even with yesterday’s candle, at about $250, would be good; closing back above the lost uptrend line would be even better. The low volume, however, makes a return to the trend seem unlikely.
A thick band of price support (grey) waits below to catch Ethereum’s fall, as does the 55EMA. What will happen next on this chart mostly depends on what Bitcoin does, as all cryptos’ fiat prices are affected by Bitcoin’s price.
Trading against BTC itself, ETH (above) looks much stronger and more stable. It has held the 0.031BTC price zone for a couple of weeks now, and looks unlikely to lose this level no matter what Bitcoin does. Volume is consolidating, and this level seems like a solid jump-off point for moves higher into the 0.034BTC area.
Despite this stability, ETH/BTC looks tepid at the moment. We should keep an eye on daily candle closes for signs of movement. But, as with the rest of the market, Bitcoin’s movement will set the pace. BTC needs to find a bottom for the current correction and give the market some stability. Then, maybe altcoins like ETH will have room to run.