Over the past week, the altcoin price has dropped significantly, and investors interested in Bitcoin (BTC) have seen the value of their portfolio affected.
Initially, the price of Ether (ETH) followed Bitcoin higher as the top-ranked digital asset surged above the $ 12,000 resistance level but as BTC continued to slowly push Ether higher, it struggled to cross the $ 400 support.
Ether’s loss of momentum and the correction of altcoins has led some cryptocurrency traders to tweet that the altcoin season is over and many are citing bearish price action in the ETH / BTC pair as evidence for the point of view. this.
Looking at the weekly chart of ETH / BTC, traders will notice that the pair is on the verge of falling below the ascending trend line and the high volume VPVR node at 0.027294 sats.
Losing this level opens the door for a further decline to 0.024519 sats and below this Ether is approaching a yearly low near 0.0160 sats.
On the daily timeframe, we can see that the loss of support for 0.032385 sats pushes the price of Ether into the VPVR gap from 0.032385 sats to 0.029536 sats.
The bleeding is likely to continue until the price reaches the 0.029536 sats level, but the current daily candle is starting to form a double bottom and it looks like there is an oversold bounce going on as the indicator. RSI is rising from 28 daily timeframe.
The signal line and the MACD of the moving average convergence divergence are still sharply declining, and the absence of strong buying reduces the possibility of a short-term trend reversal.
Perhaps if Bitcoin price enters a consolidation period in the next few days, the ETH / BTC pair may recover some lost points but this looks unlikely at the moment.
There is hope for the ETH / USDT pair
The ETH / USDT pair paints a different picture as the pair continues to make daily highs and price action is following the support and resistance trend lines of the ascending channel.
Channel support comes along with the 100-day moving average and once Ether can hold $ 400 as the $ 405 and $ 417 support are the next hurdles the altcoin has to overcome.
Price action in the ascending channels is fairly easy to follow, and the 4-hour chart shows the MACD converging with the signal line as selling is decreasing and the RSI is increasing towards 45.
In the short term, a move to the midline of the ascending channel at $ 400 looks probable but traders still expect this level to be a stiff resistance. A bullish breakout from the ascending channel ($ 430) could allow Ether to pursue the $ 468 level.
If the Ether price falls below 100-MA and falls from the ascending channel, then support is at $ 353, $ 330, and $ 315. Losing these levels means traders can look for a stronger drop down. $ 248 left.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading move is risky. You should conduct your own research when making a decision.