The cryptocurrency market witnessed a remarkable bullish breakout for Ethereum (ETH) last week. However, the momentum has faced a noticeable decline recently. Ethereum, the leading altcoin with a fully diluted valuation estimated around $377 billion, experienced a dip of over 6% since Tuesday, positioning its trading value around $3,133 as of Thursday, November 14, during the mid-New York trading session.
Despite this decline, the apprehension surrounding a significant crypto market capitulation has lessened considerably. This shift is mainly attributed to Bitcoin’s entry into its price discovery phase. As of the current moment, Ethereum’s fear and greed index has escalated to 78%, indicating a phase of extreme greed among traders.
Key Levels to Watch for Ethereum Price Ahead
In recent developments, Ethereum’s price has demonstrated a resurgence in bullish sentiment, notably after rebounding from the 200-weekly Moving Average (MA). Marking a significant milestone, Ethereum’s price has consistently closed above the critical support and resistance range between $2,800 and $2,900. This is a first since the downturn witnessed in the August 5 crypto crash.
Crypto analyst Michaël van de Poppe has drawn attention to Ethereum’s challenging performance against Bitcoin over the past two years. Observations on the daily timeframe of the ETH/BTC pair suggest the formation of a bullish reversal pattern. This pattern is characterized by a support level around 0.034 and an increasing divergence in the Relative Strength Index (RSI), suggesting potential upward movements.
The growing interest from institutional investors in Ethereum further enhances the prospects for its price appreciation. A noteworthy development is the accumulation of over $500 million by US spot Ether ETFs in recent days, underscoring the growing confidence in Ethereum’s future performance.
Altseason Timings
The dynamics between Bitcoin and altcoins are often encapsulated in the concept of “altseason,” where altcoins outperform Bitcoin. According to renowned crypto analyst Benjamin Cowen, it is crucial for altcoin investors to avoid the fear of missing out (FOMO) on meme coin rallies prematurely. Cowen points out that the genuine altseason is yet to commence, with Bitcoin’s dominance strengthening against the altcoin market over the past two years.
For altcoin enthusiasts, the awaited altseason will likely occur when Bitcoin’s dominance experiences a sharp decline. As it stands, the OTHERS/BTC pair has been trending downwards, reaching its lowest point after Bitcoin’s price soared beyond $93k on Wednesday.
In conclusion, while Ethereum’s recent price movements may seem turbulent, the overall market indicators and investment interest suggest potential bullish trends in the future. Keeping an eye on key support levels and market dynamics will be crucial for investors navigating the ever-evolving crypto landscape.
