The price of Bitcoin is stagnant below $ 10,000, while the US stock market is reaching record highs. The bullish trend and V-shaped recovery in US markets also show that the appetite for risk assets and single stocks is increasing. And Bitcoin’s struggle to show such a trend may be a hint that a retreat is imminent. At the same time, ETH/USD may have some opportunity for a new bullish rally…
As for the other major coins, Tuesday was a bearish day. Cardano’s ADA slipped 4.05% to lead the others down the road. EOS (-1.41%), Ethereum (-1.02%), Litecoin (-1.23%), Ripple’s XRP (-1.49%), Stellar’s Lumen (-1.76%), Tezos (-1.36%) and Tron’s TRX (-2.34%) also suffered relatively large losses.
As yesterday, so this morning the market is calm, except for a few coins. MakerDAO had another bullish break and managed to jump over $ 700. SwissBorg ranked 92nd in Coinmarketcap, grew 32% today. Kyber Network is also on our list with a 13.4% price jump after yesterday’s bullish break.
For the day ahead, the breakthrough of Bitcoin to $ 9,900 would provide strong support to the wider market. At the time of writing, the total market capitalization was $ 273.04 billion. And the dominance of Bitcoin was 66.04%.
Is ETH/USD on the threshold of a new rally?
Rafael Schultze-Kraft of Glassnode recently pointed out that the number of new daily Ethereum addresses that perform more than one ETH transaction has grown sporadically since January. And already reaching peaks last recorded in 2018. The number of Ethereum blockchain wallets has already exceeded 100 million for the first time since the creation of the cryptocurrency.
This heightened blockchain activity has led to an increase in Ethereum transaction fees over the past few weeks. And this is essential because for the last 4 years the price of ETH has been closely linked to transaction fees at Ethereum.
Analysts see this increased blockchain activity as a factor favoring ETH bulls. In addition, the upcoming launch of the Ethereum 2.0 testnet is likely to generate some support for the cryptocurrency to move higher in the coming months.
For now, however, Ethereum is consolidating with Bitcoin
From a technical point of view, the price action of Ethereum has been relatively lackluster lately. Buyers are vying for a steady uptrend as the cryptocurrency closely monitors Bitcoin’s price action.
Over the past few days, ETH/USD has been trapped in sideways trading, struggling to gain momentum in any direction. The pair is consolidating after retreating from the top at $ 253.23 last week. ETH/USD saw a significant drop to $ 235 on Sunday, but is now trading above $ 243 and continues to defend the 12-day SMA.
The highly choppy market continues to keep most buyers on the sidelines for now. On the downside, ETH/USD has very strong support at $ 242.00 (50 SMA on a 4-hour chart). If the bears manage to break below it, we can see a retreat to $ 235 and $ 230. There is an SMA 100 on the 4-hour chart, and if it lasts, it may help revive the uptrend. It is possible that more buyers in this region would prefer to enter the market at a lower price in anticipation of profits above $ 250 and $ 280.
But overall, the technical picture remains unclear due to sideways moving indicators. RSI and MACD have shown no signs of change in the last few days. If the equalization movement continues, ETH/USD is expected to remain in consolidation even longer.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.