Crypto market capitalization decreased slightly again. Bitcoin price dropped another 2% and broke down to $38,000 level. But at the same time, the dominance of Bitcoin has continued to decrease for 4 days and is now 46.5%.
The altcoin market has a weaker downward trend. First of all, this is due to Ethereum and the launch of London hardfork in less than a day. On this news, the asset itself and projects built on its blockchain have been growing for two weeks. So let’s take a look at the ETH chart:
Over the past day, the Ethereum price fell by 4% and again dropped below $2,500. The chart was unable to break through the uptrend formed in early 2021 and gain a foothold above it. Sellers increased pressure and cut prices.
The closest support level is the $2,300 – $2,350 zone. Most likely, this is where the price will come in the nearest days. The Fibonacci grid also points to the same area, since the last significant level 0.236 is located here.
ETH chart still clearly shows a “double bottom” pattern that has not worked out yet. Judging by it, the chart has an excellent opportunity to grow by $600 – $700 up to the level of $3,100. Most likely, this will happen after the support level retest at $2,300.
The RSI and Stochastic indicators quickly found themselves in the overbought zone and consolidated there. At the same time, there has been a significant reversal on these oscillators since yesterday. The point that we will observe is the middle line located at the 50% mark. This is where both indicators can come to.
Over the past 2 weeks, the price of Ethereum has risen by 60% from $1,700 to $2,700 almost non-stop. Therefore, a correction is now needed to gain strength for a new significant upward movement. The current correction can only strengthen a new round of growth for this asset.
London hardfork can become a great fundamental factor for Ethereum’s medium-term growth. This is due to the fact that miners’ fees will be cut and more ordinary users will be able to use the Ethereum blockchain for operations with DeFi. Projects from the DeFi sector will also have significant growth potential.
If you consider investing in ETH now, do not despise the possibility to buy cryptocurrency with zero fees at Crypterium.