Ethereum is still hopelessly coupled to Bitcoin price and practically mirrors the movements of the world’s leading cryptocurrency. With BTC still vulnerable and a larger drop expected by many, ETH is very likely to follow suit and analysts are looking into support and resistance zones.
ETHEREUM TIED TO BITCOIN PRICE
You could almost overlay the charts for Bitcoin and Ethereum over the past couple of weeks and see hardly any difference. When bitcoin price $7865.93 surged to its 2019 high of $9,100, Ethereum mirrored the action with a pump to $285, its highest in nine months.
The latest rout sent ETH tumbling back to $230 which was a support zone from its Bitcoin induced drop on May 23. Currently, Ethereum price $249.617 is consolidating around the $245 area but will no doubt follow its big brother’s next major move.
WHERE TO NEXT FOR ETH?
Long term crypto trader ‘CryptoFibonacci’ has been scouring the charts looking for key levels of resistance and has noted a cluster of Fib levels around the $200 price zone:
$ETH Daily Chart. You can see the 10 ema curling down now. That will be resistance on any up move and has been. Would like to see a huge bounce off the 50 ema, where a Fib cluster awaits. That area is 209-212.
$ETH Daily Chart. You can see the 10 ema curling down now. That will be resistance on any up move and has been. Would like to see a huge bounce off the 50 ema, where a Fib cluster awaits. That area is 209-212#ETH pic.twitter.com/4ExOTY93vI— CryptoFibonacci (@CryptoFib) June 6, 2019
As support turns resistance moving averages will come into play as they have traditionally. The 50-day moving average is currently at $210, which ties in with the Fib levels mentioned above. In the shorter term $230 remains a strong level of resistance but if and when this breaks the next one is clear.
Crypto trader going by the moniker of ‘Credible Crypto’ has also pegged the $210 level but remains bullish on Ethereum:
The bullish $ETH count that leaves everyone waiting for $210 in the dust… I have added spot back at $245 and will buy a lot more if we get $210, but don’t think it is guaranteed or you may be sorely disappointed when we move into the 400-500’s and you are left on the sidelines.
The bullish $ETH count that leaves everyone waiting for $210 in the dust...I have added spot back at $245 and will buy a lot more if we get $210, but don't think it is guaranteed or you may be sorely disappointed when we move into the 400-500's and you are left on the sidelines. pic.twitter.com/dNYmJvc87U— Credible Crypto (@CredibleCrypto) June 4, 2019
Fellow trader ‘The Cryptomist’ remains bearish adding:
Still hovering around previous target that was attained – 240. Following btc steps, and I see further drop coming. Testing 50 RSI on daily, so if we do not bounce here, I feel we will go towards next target of $220 range.
All the attention has been on BTC/USD recently. At current prices, bitcoin is just over 60 percent down from all time high whereas Ethereum is over 80 percent down.
During the 2017 bull run, the ETH surge was largely attributed to FOMO for ICO investment, most of which received funds in ETH. This time, however, Ethereum and most of the altcoins, are rising and falling with the movements of BTC, which has outperformed most of them.
Whatever happens to Ethereum in the next few days, however, will be a direct result of Bitcoin’s next move, as it remains at the mercy the world’s most popular cryptocurrency.