Bitcoin (BTC) price surged above $ 60,000 over the weekend, its all-time high. However, it is not possible to say the same thing for Ether (ETH). In general, the market did not show enough strength after seeing the high level. As a result, the BTC price has dropped 7 percent in the past 24 hours.
During this pullback, the ETH / USD pair also declined. On the other hand, the ETH / BTC pair has seen a bounce. While Bitcoin’s massive weekend earnings have been overshadowed, altcoins are also likely to stabilize against BTC. For Ether, the start of a major potential rally to be completed later this year can be seen… Let’s look for the answers in the graphs.
Ethereum struggles to rise above $ 1,900
The failure of the Ethereum price to exceed $ 1,900 on March 13 increased the strength of the $ 2,000 psychological resistance. The general market is expecting a sharp break above $ 2,000, and it looks like we’ll wait a little longer for that.
After the temporary low at $ 1,300, there was a succession of support / resistance transformations. The last support / resistance transformation was seen at $ 1,740 and this process was completed with a rise towards $ 1,900.
Ether price quickly bounced back to the $ 1,740 level. Such a drop is perceived as a sign of weakness, as it increases the risk of key support levels failing multiple times.
In other words, if the Ether price cannot hold the $ 1,740 area, the market may face a decline towards the $ 1,500 level.
ETH / BTC parity still intact
Fortunately for the bulls, the ETH / BTC pair remained strong during this recent drop in BTC price. Appears to find support in the 0.029 to 0.031 Satoshi area. But if this support zone is lost, the next support is in the 0.025 to 0.0275 Satoshi zone. This level is particularly critical for the continuation of the current bull market cycle.
Meanwhile, the chart shows that altcoins are not always rising. Often there are heavy corrections and the ETH / BTC pair has been in the correction process since February.
The ETH / BTC parity is still bullish. Since the summer of 2019, when the general uptrend started, constantly rising bottoms were observed.
Consolidation periods are also experienced in such rises. However, as long as higher lows are seen, the bullish structure remains valid. Therefore, the aforementioned regions, i.e. the area between 0.025 and 0.0275 Satoshi, are of critical importance.
A strong move will take place for Ether as Eth 2.0 approaches its update date. This will help solve scaling issues and high transaction costs. Until then, the FUD (fear – uncertainty – doubt) surrounding the project may continue.
However, traders are often described as the best period in times of negative market sentiment when the market is over-traded or the FOMO (fear of missing an opportunity) process occurs.
A possible scenario for the Ether price
Critical areas to hold for Ether are currently between $ 1,700 and $ 1,740. As long as this support zone is defended, tests of the above resistance levels can come. However, key resistances in the upward move are between $ 1,830 and $ 1,860.
Considering that market sentiment has changed over the past few days, it seems unlikely that the $ 1,830 to $ 1,860 level will break in the short term. I guess the resistance will work here. After that, Ether price could face another correction move towards $ 1,500.
The next big rally could happen after the consolidation and compression period is complete. This process will increase the price of Ether well above $ 2,000. However, patience is very important. Investors should know that it takes time for the price to settle on the ground.
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