Can Ethereum carry the cryptocurrency industry despite the resistance of altcoins?

A few weeks after Bitcoin’s price dropped below $16,000 – assisted by the FTX fiasco – the cryptocurrency market stabilized. However, altcoins have not yet finished their sentences. It is plausible to suppose that other cryptocurrencies, on average, perform worse than Bitcoin (BTC), although it would appear that the market landscape has shifted significantly since 2018. Ethereum, for instance, has not made a new low since June of 2022, when it was at its all-time low. Is Ethereum in a position to carry the market for cryptocurrencies? Let’s go into the nitty-gritty of the situation with alternative cryptocurrencies.

Alternative cryptocurrencies: Have we seen the bottom yet?

Alternative cryptocurrencies are attempting to mitigate the harm they have sustained, which is a far cry from the upward trend seen in 2021. In the coming weeks, purchasers will have the opportunity to alter the market’s momentum; however, before doing so, let’s have a look at the important levels at which we should conserve:

Altcoin Capitalization Chart (1W)

From the level break in May 2022 up to $950 billion, the trend is downward. Since that time, all returns that have a level of institutional bias that falls between EMA 9 and EMA 18 have been rejected. Since June, the market cap of altcoins has been contained inside a narrow range, with the upper limit at $670 billion and the lower bound at $460 billion respectively. Because this is the third time that the support has taken action, buyers need to respond swiftly to avoid a catastrophe below this threshold. A new wave of fall for alternative cryptocurrencies can result from the loss of media. Should this scenario play out, the next level of support can be found at $320 billion, which is 30% less than before?

In the event of a bounce and if the institutional bias is overcome, the price may go back up to the highest point of the range. It would be a good sign if the market was able to close higher than the previous high of $616 billion. In the next round, you will need to break out of the range and have a closing price that is greater than 700 billion dollars. This is the level to keep an eye on in the days, weeks, and months ahead. To accomplish this, it is required, of course, to keep the most recent low from June, which was $428 billion.

The momentum caused the bearish trendline that had been present since February 2021 to be broken. The momentum is likely shifting its tendency, but to confirm this, it will be essential to continue marking bottoms and ascending tops.

Alternate cryptocurrencies compete well with Bitcoin and have their advantages.

Altcoins are holding up despite the bear market, much like the token exchange industry, which is still in a range, or like Ethereum, which has not posted a new low since June of last year. Both of these sectors are similar to Ethereum. When we compare the capitalization of alternative cryptocurrencies to that of Bitcoin, the conclusion that we reach is pretty surprising:

When compared to 2018, the scenario has undergone a complete transformation. Although the cryptocurrency market is indeed in a bear market, the dynamics of altcoins in comparison to Bitcoin are in no way the same as they were in 2018. The price continued to fall throughout the most recent bear market and remained below the negative trendline until June 2020.

The price has moved above a positive trendline even though it is now trading below a significant resistance. From this vantage point, two possible outcomes can be deduced:

The ecosystem is changing, and other cryptocurrencies are becoming more appealing to investors. This is the bullish scenario. It is not difficult for us to conceive of the possibility that some projects are more attractive than they were in 2018, that the number of altcoins is growing, and that Bitcoin is no longer the only cryptocurrency receiving coverage in various media outlets. In this scenario, once the storm has passed, the resistance might be breached, and alternative cryptocurrencies might begin climbing once more.
The bearish scenario: the bear market is only getting started, and the worst is yet to come in terms of its severity. In this scenario, the price would be rejected by the resistance, which could lead to the breaking of the bullish trendline. If the events described here take place, alternative cryptocurrencies and the cryptocurrency ecosystem as a whole would suffer tremendously.

Although the two scenarios couldn’t be more different from one another, you still need to be prepared for everything that could come your way. In the event of a significant decline, it is imperative to take precautions to avoid having excessive exposure to the market.

At this time, the institutional bias is positive, and there is a possibility that the price will bounce off of the EMAs in the weeks to come. As long as the momentum continues to develop below the negative trendline, it will always be extremely fragile. Buyers can take advantage of the situation if the RSI manages to break the bearish trendline.

In the short term, Ethereum needs to change its momentum relative to the dollar.

Although Ethereum has not reached a new low point since June of last year, the price has been in a downward trend in the short term since the middle of September:

Because it has been displaying decreasing lows and highs since September of last year, the trend is still considered to be bearish when seen in this unit of time. In addition to this, it is at the level of institutional prejudice (shown by the red circle), which could be a barrier. If there is a gain, it will be necessary to go over the previous high point of $1,680.

In a manner analogous to that of the chart that tracks the market capitalization of alternative cryptocurrencies, Ethereum’s momentum might shift every week. Indeed, positive momentum weekly would be seen at a break in the resistance at $1,900 and a fence above $2,030. To accomplish this, it will also be essential to keep the price at $885 per month, which was the lowest it had been since June. This will take some time, but in the meantime, buyers have the opportunity to reclaim control of the situation.

The momentum has stalled because it is below the resistance level of 58 on the RSI. To be successful in finding colors on the course, it will be important to locate a distinct bullish momentum on the momentum.

Ethereum is in a good spot in the very short term, with a price between $1,085 and $1,305:

The route was turned down by the resistance at $1,305 four times in a single month. The resistance level at $1,225 allowed for a rebound, and it may be tried again in the days to come. If buyers are successful in breaking the tidy, the price may go fast towards the next resistance, which is located at 1,590.

If the buyers are unable to complete the transaction, the price may risk falling back to the level of the bracket at $1,085. This would not be a good sign since it would allow sellers to set a new bottom, which would confirm the downward trend in the market. A negative trendline was just broken by the momentum; perhaps now is the time for buyers to step in and help break through the resistance.

When everything is said and done, the circumstance is different compared to 2018; certain alternative cryptocurrencies are more powerful than Bitcoin. Since June of last year, the price of Ethereum has not yet reached a new low. In addition, the trend might turn bullish once more if the price of bitcoin finishes the week higher than $2030. But with Bitcoin’s price being so low, is it possible for alternative cryptocurrencies to begin an upward trend? Will the weakening of Bitcoin take other cryptocurrencies down with it? Let’s keep our fingers crossed that 2023 will be smoother for alternative cryptocurrencies than 2022 was.