The consolidation of Bitcoin would allow Ethereum to trace a breakout from the upward channel in the exchange rate against USDT
Over the past week, altcoin prices have fallen significantly, and investors with little exposure to Bitcoin (BTC) have seen the value of their portfolios take a huge hit.
Initially, the price of Ether (ETH) followed Bitcoin upwards when the main crypto asset broke the $12,000 resistance. However, as BTC continues its rise, Ether struggles to turn the $400 into support.
Ether’s loss of momentum and altcoin correction prompted several crypto traders to tweet that the alt-season ended, citing the bearish price action in the ETH/BTC exchange rate as proof.
Looking at the weekly ETH/BTC chart, traders will notice that the pair is about to fall below the rising trend line and the high volume VPVR node located at 0.027294 sat.
Losing this level opens the door to a further decline first towards 0.024519 sat and then towards annual lows around 0.0160 sat.
On the daily chart, we can see that losing support at 0.032385 sat pushed Ether’s price into the VPVR gap between 0.032385 and 0.029536 sat.
The collapse looks set to continue well beyond the 0.029536 sat level, despite the apparent recovery from the overbought zone in CSR observed yesterday. The signal line and MACD are still in rapid decline, and the absence of a strong purchasing volume worsens the situation in the short term.
If the Bitcoin price enters a consolidation phase for the next few days, the ETH/BTC exchange rate could recover some of the lost ground, but at the moment this scenario seems unlikely.
There is hope in the ETH/USDT exchange rate
The ETH/USDT exchange rate presents a rather different image, with new rising minima on the daily chart and the price contained in the support and resistance lines of the rising channel.
The support channel aligns with the 100-day moving average, and once the $400 support level is reached, Ether will face $405 and $417 as subsequent obstacles.
The price trend within ascending channels is quite simple to monitor and the 4-hour chart indicates that the MACD is approaching the signal line while the sale is decreasing and the RSI is over 45.
In the short term, a movement towards the mid-range of the $400 channel seems likely, but traders still expect this level to offer strong resistance. A bullish breakout from the rising channel ($430) will allow Ether to look at $468.
If Ether’s price falls below the MA at 100 days and exits the ascending channel direct downwards, the closest support levels are at $353, $330 and $315. If these levels are lost, traders may aim for a more pronounced contraction to $248.