Ethereum back to $1,900 soon? Cryptocurrencies show their strength

Ethereum is on the rise again, but for how long?- Yesterday evening the company Amazon, one of the largest capitalizations in the US market, posted disappointing quarterly results. Following these results, the stock lost 20% in a few minutes. Bitcoin is highly correlated to the US equity market, a drop of this magnitude could have rocked the cryptocurrency market, especially in the middle of the bear market. Yet Bitcoin, Ethereum, and altcoins have proven to be quite resilient, is that a good sign for the weeks and months to come? Ethereum has the opportunity to regain bullish momentum, but it will be a long road to the second capitalization of the cryptocurrency market.

Ethereum against the dollar: resistance approaching

Ethereum still bearish in the long term

In high-time units (3 weeks), Ethereum (ETH) is always bearish. The price starts to rise again, but resistors important ones come in the way of the king of altcoins:

Ethereum price against the dollar (3W)

Ethereum is approaching two resistors important: the institutional bias (EMA 9/ EMA 18) which acts as dynamic resistance and the weekly resistance at $1,900. If buyers continue to hold their hand, it is likely to see shortness of breath at these technical levels.

On the other hand, buyers have the opportunity to change momentum in this very high-time unit. For this, it will be necessary to observe a fence greater than $2,000. This would potentially make it possible to head toward the last highs, but there is still a long way to go.

In this unit of time, the momentum is always bearish the RSI approaches the level of the bearish trendline. She should do resistance in the coming days. When the trendline gives way, long traders will then take advantage of the momentum to increase the pressure.

Ethereum bounces off the support level at $1,250

Buyers succeeded in defending the bracket at $1,250 and the price rebounded, to overcome the institutional bias. Ethereum is on the rise again, but resistors are already approaching:

Ethereum is on the rise again in 3D.
Ethereum price against the dollar (3D)

The course of the second capitalization of cryptocurrencies is regaining color. In just a few days, ETH soared by almost 35%. The upward movement is present, but the momentum remains brittle because of the wick under the support. The objective of buyers is now to find a bullish momentum with troughs and rising peaks. For the moment, the momentum is fragile and a return to $1,000 is to be considered.

The momentum tries a breakthrough of the bearish trendline by marking a bullish divergence. This shows that sellers are running out of steam, and buyers must take advantage of this to change momentum in the medium term. To find interesting momentum, it would be necessary to resume a bullish momentum by closing above 60 RSI.

Ethereum regains strength against Bitcoin

Against Bitcoin, ETH is on the rise again, but it remains in the weekly range :

Ethereum regains color against Bitcoin.
Price of Ethereum against Bitcoin (3D)

We were talking about it last week, Ethereum had to keep the intermediate support of the range, and buyers responded. The price rebounded at the level of the dual bracket: intermediate support and bearish trendline. Of course, the pair remains in a range, it will be necessary to leave the range definitively to find a season of altcoins.

The local top was made on a fragile structure in “V top”, the operators have the possibility of changing this “V top” in the bullish continuation or a double top. The buyer’s objective is to hold the last low and break out of the range. Sellers, on the other hand, have the opportunity to mark a long-term top in the event of a close falling below support. This price action would be extremely bearish and the long-term dynamic could be called into question.

Bitcoin dominance shows signs of weakness

For the past few weeks, Bitcoin has been attracting capital, but will the trend continue? Altcoins show up resilient given the current context:

Bitcoin dominance is showing signs of weakness.
Bitcoin dominance chart (2W)

Bitcoin dominance is also in a tidyBetween 40% and 48%. Currently, it is on a level of resistance materialized by the EMAs. A return to the bottom of the range would not be unlikely given a change in momentum.

Given the current context, it seems very unlikely to experience an Alta season shortly. On the other hand, a rise in altcoins, even timid, is not impossible. Whatever happens, the real trend will set in when the dominance comes out of the weekly range.

The momentum is bullish in this unit of time, the RSI marks several bullish divergences important. This criterion alone shows that Bitcoin could, in the medium term, continue to attract capital.

The capitalization of altcoins is still in a downtrend

Despite the recent rise, the capitalization of altcoins is still bearish :

The capitalization of altcoins is bearish.
Altcoin Capitalization Chart (1W)

Every week, the lows and highs are descending from the high marked in August 2022. Currently, the price is facing dynamic resistance (institutional bias). For the moment, the rise remains timid and the course could even be dismissed in the coming weeks.

As long as the price remains below the resistance at $690 billion price will remain brittle. On the other hand, buyers have the opportunity to change momentum by breaking back above resistance and closing above 700 billion dollars.

The momentum is strong, a bullish divergence has just been validated with the fence above 38 RSI. A second could fall into place by overtaking 42 of RSI. This shows that sellers are running out of steam, but buyers need to take advantage.

All in all, Ethereum remains bearish and below its weekly resistance at $1,900. Buyers have the opportunity to change long-term momentum by closing above $2,000. Ethereum reacted well at the support level of $1,250, buyers now need to mark a higher high, higher than the previous ones to show that they do indeed have control over the price currently. The ETH/BTC pair is still in a range, but traders have shown interest in Ethereum recently. Can the trend continue? If Ethereum loses strength against Bitcoin, altcoins could take a big hit.

John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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