Yesterday, the price of Bitcoin rose again by 2% and overcame $30,000. Trading volume fell 10% to $28 billion. The daily change of bulls and bears in the Bitcoin market continues. The market has come to a point of equilibrium and is trying to decide on a further direction.
The altcoin market behaved differently. The largest altcoin, Ethereum, remained virtually unchanged in value yesterday. Let’s take a look at its chart and try to figure out where the price can go in the coming days:
For the last 2 weeks, the Ethereum chart has moved sideways between $1,900 and $2,100. All this time, the asset almost completely repeats the movements of the first cryptocurrency and does not have its own dynamics.
From the beginning of May to the current point in time, the price of ETH has fallen by 27%. At the same time, the same indicator for Bitcoin is only 20%. This indicates the fact that market participants are more willing to get rid of Ethereum, as well as that the flow of capital is carried out in Bitcoin, as a more reliable asset. This is also indicated by the dominance of Ethereum, which has fallen from 20% to 19%. This is quite a large falling for the second largest asset in the crypto market.
Ethereum can be used to judge the general state of the altcoin market. At the moment it is unsatisfactory. The vast majority of coins lost up to 60% – 70% at peak falling times. After that, prices bounced back a bit and moved into a consolidation phase. The way out of this state is possible only if Bitcoin, followed by Ethereum, show at least a small rebound.
We outlined the key boundaries for Ethereum above, this is the level of $2,100 from above and $1,900 from below. If the chart manages to fix above the upper level on the daily timeframe, then the price has a good chance of rising by 12% – 15% to $2,400. If the chart does not stay in the range and falls below the lower limit, then the price will open the way to $1,700.
It is this level that is the last global support for the asset. A large number of stop-loss orders are concentrated below it. In the event that the chart falls below this mark, Ethereum will have the potential to fall down to the range of $1,200 – $1,300.