Ethereum holding its ground amidst market turmoil

The last few months have been all about Bitcoins rises, falls and anything in between. But what about the altcoin space? Let’s take a look at the mother of all altcoins, Ethereum. What does the chart tell us, and how does it perform against the king of crypto, Bitcoin?

In order to get a good view of Ethereum’s performance, one must deem it mandatory to look at the BTC pair first before anticipating its USD value. The reason for this is extremely simple. Every crypto project in the space is heavily pegged to BTC. Whenever BTC is volatile, altcoins struggle. When BTC trades more quietly, altcoins tend to find space to develop. So while the USD pair may go up at any given moment, if the underlying BTC pair is not looking great, its gains will be limited significantly.

fig.1

Looking at Fig 1. We can see the bigger context in which Ethereum, after nearly 2 years of consolidation at its lows broke out significantly, where it ultimately met its resistance area shown in the blue zone.From there on out Ethereum has entered yet another long standing consolidation zone, coming up to about a year now. The difference however is the context in which this consolidation or in other words: “breather in price action” takes place.

fig.2

During this entire consolidation period (fig.2) the chart shows us consecutive higher highs and higher lows, making the chart look very strong. By adding some additional volume levels on the chart we can see the amount of respect its levels are giving as it establishes its upwards sloping range.

As ETH continues to grind up into its resistance levels while maintaining its bullish structure, the truth is that amidst the wild volatility across global markets over the last few weeks, Ethereum is barely budging on the higher time frames, making it look strong despite a bearish outlook people seem to have on the general economic conditions.

The biggest resistance Etherum is facing is the 0.1 satoshi zone, whereas 0.06 satoshis mark its final support. Should we lose the support, then technically Ethereum loses its bullish characteristics.

In the end what matters most is to treat each chart for what they are, and make an informed decision. The moment you stop doing this as a technical trader, is the moment you are probably trading off emotions, which is a quick way to poverty!

Trade safe!

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The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.

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