Since May of this year ETH has been stuck in this mini range between 1k and 2k, despite many attempts to break above the range high, the second biggest crypto has failed to do so thus far.
Looking at the range as with all ranges the midpoint is the controlling factor and a place to take action. The majority of time has been spent inside 0.5 & 1.0. Currently ETH has reclaimed the 0.75 line and now looks to attack the range high. The market has perfectly lined up for a successful attempt this time around.
BTC has been on the rise but it looks like it has one more leg up before cooling off, if this is the case the standard capital cycle of profits from BTC going into ETH, then large caps, midcaps, and low caps as profits get re-invested down the chain. ETHEREUM is yet to have its run and once BTC is finished traders will look to ETH.
ETH has fallen behind compared to other L1's, such as SOLANA and so I do expect a better performance as it catches up after lagging. The natural next resistance is 2770 which is the beginning of the bearish OB. However reaching that level at this stage in the bear market with so many other large caps looking more appealing could be difficult. I am still confident that ETH has more to give than we have seen in the near term.
Looking at the range as with all ranges the midpoint is the controlling factor and a place to take action. The majority of time has been spent inside 0.5 & 1.0. Currently ETH has reclaimed the 0.75 line and now looks to attack the range high. The market has perfectly lined up for a successful attempt this time around.
BTC has been on the rise but it looks like it has one more leg up before cooling off, if this is the case the standard capital cycle of profits from BTC going into ETH, then large caps, midcaps, and low caps as profits get re-invested down the chain. ETHEREUM is yet to have its run and once BTC is finished traders will look to ETH.
ETH has fallen behind compared to other L1's, such as SOLANA and so I do expect a better performance as it catches up after lagging. The natural next resistance is 2770 which is the beginning of the bearish OB. However reaching that level at this stage in the bear market with so many other large caps looking more appealing could be difficult. I am still confident that ETH has more to give than we have seen in the near term.
Comment:
It looks like after reaching the range high we have deviated above and printed a swing fail pattern as we drop back below. This is a bearish pattern and with BTC stagnating/declining it would be worth being cautious. Some lower cap alts are still performing well and so this is a sign that profits have rotated further down the leaderboard of cryptos which happens at the end of a cycle.
If this rally really is a test rally and we do fall to lower prices I think we will find out soon.
If this rally really is a test rally and we do fall to lower prices I think we will find out soon.
A long way to go but market sentiment looks to have shifted towards ETHEREUM after BTC hitting major resistance at 38K.