Bitcoin (BTC) price has crossed the $ 52,000 strong resistance level over the past few days and has moved towards an all-time high. In this process, other cryptocurrencies have also been on the rise. As of March 11, there is a decrease in prices.
Ether (ETH), the second largest cryptocurrency, is grappling with scalability issues and high network fees. Investors and traders are wondering whether to retest $ 2,000 in Ether price.
It is hoped that Ethereum updates, which are expected to take place in the summer, will have a positive impact on the price. So is a rise in Ether price at the door? Could it start to strengthen against the BTC price? Let’s interpret it through graphics.
Ethereum reaches critical level
Daily chart of the ETH / USD pair. Source: TradingView
Ethereum price movement against the dollar witnessed a significant decline, falling to $ 1,300 after reaching $ 2,000 in February and March. Michael van de Poppe, analyst at Cointelegraph and full-time trader on the Amsterdam stock exchange, rated this 35 percent correction as “healthy” as it sets the stage for the next bull market.
According to the analyst’s claim, the uptrend will not deteriorate unless the critical support level of around $ 1,300 is lost. The fact that this level has not been broken as of the beginning of March gives confidence to investors.
From this point on, what the Ether price will do in the short term depends on support and resistance tests. Support levels are shown by green boxes on the chart, with a clear resistance zone above $ 1,850 to $ 1,950.
After seeing $ 2,000, Ether seems to have thrown its dead ground on the price of Ether, which declined to $ 1,300. Moving at $ 1,500 levels for a short time, the atmosphere in the market turned positive when ETH approached $ 1,900 again.
Naturally, it is possible to move to the horizontal in the coming days before a new trend is formed. If upward movement begins and resistance breaks, a target of $ 2,500 and higher will be targeted.
The importance of ETH / BTC parity is increasing
Daily chart of the ETH / BTC pair. Source: TradingView
Analyzing the altcoin price against the dollar is not always correct. Sometimes cryptocurrencies reach their all-time highs but are not that strong against the BTC price.
Ether price is not showing strong momentum against BTC. It still hovers around 0.03 Satoshi level. In 2017, the ETH / BTC pair reached its all-time high of 0.112 Satoshi.
As seen in the chart, there was a clear return at the level of 0.035 Satoshi. It is vital to keep the support area around 0.03 from this point on. Because if this level is not broken, upward movement may come.
If ETH strengthens against BTC and breaks resistance, the range of 0.06 to 0.08 Satoshi will be targeted further down the road. Especially if the “London” update, which is expected to take place in July, reduces transaction fees, ETH may put deflationary pressure on the currency.
The opinions and comments expressed here belong only to the author. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.