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Don’t expect another 2017 season as Ethereum continues to crash against Bitcoin

October 26, 2020

While Bitcoin (BTC) is showing strength by hitting higher highs and hitting a new year high, Ethereum’s Ether (ETH) shows weakness, especially the ETH / BTC pair.

The weakness of ETH is also a clear sign of this Most altcoins also show no solidity. as they tend to mimic the performance of ether.

The satoshis level of 0.03 is a critical barrier to maintenance

ETH / BTC daily chart. Source: TradingView

The ETH / BTC daily chart shows a clear rejection at the satoshis level of 0.0325, causing a retest of the satoshis range of 0.03. A breakout of this level is very likely as the trend has gone down from 0.04 satoshis.

Don’t expect another 2017 season as Ethereum continues to crash against Bitcoin
Don’t expect another 2017 season as Ethereum continues to crash against Bitcoin

This massive rally reflected the strength of Bitcoin as BTC surged above $ 12,000 and Ether hit $ 450. although the latter has generally remained in a downtrend versus BTC in recent years.

Weekly levels to look out for in the ETH / BTC pairs table

ETH / BTC weekly chart. Source: TradingView

The values ​​to be observed are relatively easy to determine within a week. If the correction continues in the ETH / BTC pair, a correction towards the 0.026 Satoshis appears possible.

This level is crucial for a number of reasons. The first is the 100 week moving average that is in this area. This moving average should offer steady support. Thereafter, a break above the 200-week moving average will signal further upward momentum for Ether.

However, prior to the breakout, the previous zone of resistance is also around 0.026 satoshis, through the a nice change from support to resistance can occur which would signal the continuation of the upward movement.

In general, The ETH / BTC pair escaped a year-long accumulation area and set a new higher high. Hence, it doesn’t seem impossible for the previous resistance zone to be retested to confirm support.

December and January are the months to invest in ETH

ETH / BTC weekly chart. Source: TradingView

As history shows The best time to buy Ethereum was between December and January.

Markets tend to move in cycles and within those cycles some smaller cycles also come into play. There are cycles in the cryptocurrency market that occur every few months.

One of those cycles is the confirmation and construction of a floor at the price of ETH, which may indicate a possible rally for altcoins. In the past five years, this one-story building was built between December and January, after which there have been major climbs.

Bitcoin’s dominance still seeks to test the 65% to 67% level

Weekly graph of bitcoin dominance. Source: TradingView

Bitcoin’s market capitalization dominance is increasing. We saw the same thing in the other fourth quarters of the past few years.

Bitcoin’s dominance fell below 65% -67%, after which the altcoin markets rebounded. However, we have seen no further confirmation that this downtrend is recurring.

It is very difficult to determine the importance of such a new test (since the Bitcoin domain is not a tradable asset). But the domain is in a decent position to rise again.

However, If the dominance cannot rise above 65% to 67%, a continuation downwards is likelywhich can cause altcoins to see a big rally.

The crucial level for the ETH / USD pair

ETH / USDT 1-day chart. Source: TradingView

The ETH / USD chart shows a clear breakthrough above the resistance range of $ 380-385, The price of ether rises above the $ 400 mark.

However, to confirm the separation, The $ 380-385 area should now serve as support. If this range is not supported, the probability of a deviation above the range becomes relevant.

In this case, it is very likely that the price of Ether will drop below $ 380 Test the low range of $ 315-320 again.

However, this is still not a bad case for the bulls as the markets keep looking to retest the $ 260 and $ 290 levels. If these levels are retested, it will be a different team. However, keep an eye out for the $ 380 area that is meant to serve as support.

If the range of $ 380 to $ 385 holds, a possible continuation toward $ 440 is on the table. The next question then is whether this area of ​​resistance can be broken up, which would indicate greater strength.

As discussed aboveThis largely depends on whether the ETH / BTC is starting to show robustness.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.