Last week, altcoin prices received a significant haircut, and investors who were light on Bitcoin (BTC) saw their wallet value take a hit.
Initially, the price of Ether (ETH) followed Bitcoin higher as the tier one digital asset rallied through the $ 12,000 resistance, but as BTC continues to slowly push higher, Ether has struggled to flip. $ 400 to support.
Ether’s loss of momentum and correction in altcoin has led a number of cryptocurrency traders to tweet that the altcoin season is over, and many cite bearish price action in the ETH / BTC pair as proof of this view.
Looking at the weekly ETH / BTC chart, traders will notice that the pair is on the verge of falling below the ascending trend line and the high volume VPVR node at 0.027294 sat.
The loss of this level opens the door to a further drop to 0.024519 sat and below this Ether approaches annual lows near 0.0160 sat.
Over the daily time frame, we can see that the loss of the 0.032385 sat support pushed the price of Ether in the VPVR gap from 0.032385 sats to 0.029536 sats.
The bleeding looks set to continue until the price reaches the 0.029536 sats level, but the current daily candle is starting to form what looks like a double bottom and there appears to be an oversold bounce going on as the RSI rises from 28 on the daily time frame.
The signal line and MACD of the moving average convergence divergence indicator are still steeply falling and the absence of strong buying volume decreases the possibility of a short-term trend reversal in place.
Perhaps if the price of Bitcoin enters a period of consolidation for the next few days the ETH / BTC pair could recover some lost ground but at the moment it seems unlikely.
There is hope in the ETH / USDT pair
The ETH / USDT pair paints something of a different picture as the pair continues to hit higher daily lows and the price action is following the support and resistance trend lines of the ascending channel.
The channel’s support comes alongside the 100-day moving average and once Ether is able to hold $ 400 as support the $ 405 and $ 417 are the next hurdles the altcoin has to overcome.
The price action within the ascending channels is fairly easy to chart and the 4-hour chart shows the MACD converging with the signal line as the sell decreases and the RSI rises towards 45.
In the short term, a move to the midline of the ascending channel at $ 400 seems likely, but traders still expect this level to be a strong resistance. A bullish breakout of the uptrend channel ($ 430) could allow Ether to pursue $ 468.
If the price of Ether falls below 100 MA and falls off the ascending channel, there is support at $ 353, $ 330 and $ 315. Losing these levels means that traders can look for a sharper drop to $ 248.
The views and opinions expressed herein are solely those of the 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.