Would you look at that — over the past 30 minutes, crypto assets have tanked. In a matter of about ten minutes, most large-cap altcoins, including Ethereum, XRP, and Litecoin, shed approximately 5% on average.
The sell-off in the price of Bitcoin was the catalyst in this case, which in and of itself caught many traders with their pants down.
With this move, Bitcoin dominance slipped, falling by 0.4% as the crypto asset class dumped in unison. This means that relative to altcoins, BTC actually fell further.
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This slight drop goes against the common trend seen in this phase in the cryptocurrency cycle, during which Bitcoin dominance actually rallied higher as BTC saw volatility.
What’s Next For the Crypto Market?
With this drop in mind, which sent Ethereum to flirt with $210, what exactly are analysts thinking is next? Well, for Bitcoin, a further move to the downside might just make sense.
According to Mohit Sorout, a crypto investor, Bitcoin closing under $9,500 on the four-hour chart will result in a subsequent move to $8,500.
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Sorout’s expectations line up with those put forth by Mike Novogratz, the chief executive of crypto merchant bank Galaxy Digital. Novogratz yesterday told a Canadian television outlet that he expects for a healthy consolidation, with $8,500 being the key price point to watch over the next few weeks. He claims that this level, which is where the closest CME gap is, should act as a low in this move lower.
If the current trend in Bitcoin dominance continues, this move lower could result in altcoins continuing to rally against BTC even more.
Featured Image from Shutterstock. Chart Courtesy of Tradingview.com
Ethereum may see intense rally after piercing this technical resistance
Ethereum (ETH) has seen some mixed price action over the past week, with the cryptocurrency previously finding some stability around $280 before plummeting below $250 in tandem with Bitcoin’s crash below $10,000.
In the time since this violent movement occurred, however, ETH’s bulls have been able to regain their strength, and they have been subsequently pushing the cryptocurrency higher.
Importantly, ETH’s recovery from its recent selloff has allowed it to break above a critical technical resistance formation that was previously suppressing its price, with this development suggesting it could soon rally significantly further.
Ethereum moves higher as the aggregated crypto market recovers from weekly lows
At the time of writing, Ethereum is trading up just under 5 percent at its current price of $267, which marks a notable climb from its multi-day lows of under $250.
The tempered uptrend that ETH has experienced in the time following its recent flash crash has also allowed it to outperform Bitcoin, as it is currently trading up 3.5 percent against its BTC trading pair.
In order for Ethereum to once again find itself caught within a tailwind that sends it past $300, it is imperative that the cryptocurrency is able to once again regain its position within the $280 region.
One factor that could suggest a move back up to this region is imminent is the possibility that it is currently trading within a wide bull flag, with its recent bounce at roughly $250 marking a defense of the lower boundary of this bullish formation.
The Crypto Dog, an incredibly popular cryptocurrency analyst and commentator, recently shared a chart showing this formation, questioning whether it is worth going long on Ethereum based on this pattern.
ETH highly bullish after moving above weekly Ichimoku cloud
The potential bull flag ETH is caught within isn’t the only factor counting in bulls favor, as the cryptocurrency has also been able to pierce its weekly Ichimoku cloud, which is a highly bullish mid-term development.
CryptoWolf – another popular crypto trader – spoke about this in a recent tweet, pointing to a chart showing the latest development.
“ETH trading above the weekly Ichimoku cloud. God bless Vitalik.”
In order for this bull-favoring development to be confirmed, it is imperative that bulls are able to hold the crypto above this level until its weekly candle closes this Sunday.
Ethereum, currently ranked #2 by market cap, is up 1.41% over the past 24 hours. ETH has a market cap of $28.81B with a 24 hour volume of $20.65B.
Chart by CryptoCompare
Posted In: Ethereum, Altcoins, Analysis, Price Watch