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The momentum of the cryptocurrency market has returned to Bitcoin (BTC) recently as BTC’s dominance and trading volumes have increased with its price. In this regard, the main altcoin indicator, Ether (ETH), is not doing well as ETH / BTC has dropped 30% in the past couple of months.
Now, many cryptocurrency traders are asking when altcoins will bottom out and start to rise again. Let’s take a look at what the graphs show.
Ether that stays above 100 weeks and 200 weeks MA
The weekly chart is showing an accurate range, as the Ether price failed to break through the $ 450 resistance zone. However, some bullish indicators are also seen on the charts.
One such bullish indicator is the turn of the 100 and 200 week moving averages (MA). These MAs are often seen as a crucial indicator of bullish / bearish sentiment in the markets. As the price of Ether broke through the MAs in the previous months, it can be said with confidence that this cryptocurrency is in bullish territory.
However, another bullish argument is the turn above $ 270, which has been resistance for over a year and has only been surpassed in the past few months.
An apparent breakthrough occurred, after which the price of Ether jumped to $ 450. In this breakout, however, there was no clear support / resistance reversal of this $ 270 zone, which means that a retracement towards this level will be relatively healthy.
Then, a range of $ 270 to $ 450 is established based on the weekly chart. In other words, a probable retest of the $ 270 area is on the table.
Breaking the $ 450 to the upside means a continuation towards $ 800 is very likely.
Ether resting on a support of $ 368 to $ 375
The daily chart shows a potential rising wedge construction with decreasing volume. This rising wedge construction is currently at the $ 368– $ 378 support level. This level is crucial for lower time frames.
If this area is lost, a sharp decline can be expected. In this regard, a test of the $ 315 or even $ 270 and potentially $ 250 level is on the table. If the $ 368– $ 378 level is lost, the 100-day MA will also lose its support value, indicating a greater downside potential.
The four-hour chart indicates a slight upward movement in the previous 24 hours. However, the upward push failed to break out of the $ 400 resistance zone, which resulted in a significant drop later on.
This decline was also caused by the weakness of the Bitcoin markets and a significant influx of ETH from a single entity to exchanges, minutes before the drop occurred.
ETH / BTC facing potential support zones
Historically, the fourth quarter is not the best time to hold ETH until it bottoms out in December. So far it doesn’t seem to be any different this year, as the price of Ether has dropped 30% from its recent high of 0.04 sat.
The Ether vs Bitcoin chart shows a clear view of the support and resistance levels.
In the higher time frames, a potential support zone is approaching. Alongside the 200-week moving average, support could be found in the 0.024-0.026 sats area, as this is the previous resistance zone to flip for support.
Ether’s daily ETH / BTC chart shows a slight rebound in the past few days as the 0.028 sat area served as support. However, there is still no sign of a reversal, as the price of Ether still appears to correct.
Bullish arguments can be made once the resistance zone above 0.0315 sats breaks and flips for support. Other bullish signals include Ether hitting a bottom at 0.026 sat with a bullish divergence at the bottom. This would be the strongest indication of any bottom structure.
The views and opinions expressed herein are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your research when making a decision.
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