A strong Ethereum is vital for altcoins
When it comes to an altcoin season, a strong uptrend in the price of Ethereum (ETH) is crucial. From mid-October, ETH experienced a rally, breaking through key resistance levels at $2,000 and $2,130. The price climbed to $2,700 before facing resistance and retracing back to the bullish trend line. Despite being overshadowed by Bitcoin (BTC) and other altcoins, ETH still saw a significant gain of 79%.
Source: Coingecko/Trading View
ETH rally in danger
The ongoing rally of ETH is now at risk as the price consolidates below the trend line. A daily candle closing below the trend line confirmed the break, and the subsequent candle on Thursday is pushing the price lower.
Source: Coingecko/Trading View
Strong price supports below
Zooming out to the weekly timeframe, there are strong price supports awaiting ETH below. The $2,100 level is expected to provide significant support, and further down, the support level at $2,000 holds the structure of the entire bull market for ETH so far. Breaking through this ascending triangle support would jeopardize not only the ETH bull market but also the entire altcoin sector.
It is common for markets to experience breakouts followed by a rally before retracing to confirm the previous price structure. While corrections may be challenging for traders and investors, they are healthier for the overall bull market compared to unsustainable price surges.
Trade with caution.
Hot Take: $ETH Rally Losing Steam
The recent rally of Ethereum (ETH) appears to be losing momentum as fears of a potential price correction grip the crypto market. After a significant climb and reaching resistance levels, ETH is now consolidating below the trend line, putting the ongoing rally in jeopardy. The price supports below provide some hope, but breaking through the strong support levels could have severe consequences for the ETH bull market and the altcoin sector as a whole. Corrections are a normal part of market dynamics and are healthier for the overall market than unsustainable surges. Keep a close eye on the market and exercise caution in your trades and investments.
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