The price of Ethereum can break the ascending channel if Bitcoin consolidates


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.

Crypto Market Weekly Price Chart. Source: Coin360

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.

1 week ETH / BTC chart. Source: TradingView

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.

ETH / BTC daily chart. Source: TradingView

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.