After failing to rally above $1,250 and $1,280, ethereum could not remain above $1,250 and formed a high near $1,270, after which it began afresh decline recently.
On the 100 hourly simple moving average, Ethereum's price dipped below the $1,200 level to get to $1,184. On the hourly chart, ethereum formed a key contracting triangle with support near $1,195.
Major resistance levels are expected at $1,250, $1,280, $1,300 & $1,350 levels. There is an expectation that ethereum would outshine the bitcoin in performance unless there is a clear breakout below the $1,150 support zone.
Layer-2 Ethereum solutions provider Optimism has soft-launched on the mainnet over the weekend after a development year. It is still undergoing testing, which is why it's been soft-launched. Coinbase and Defi protocol Synthetix have been busily testing the system, and it is set to be launched publicly in 2 months. Several other L2 deployments have been launched recently, including Synthetix's Castor and Loopring's L2 to L1' gas-free' transfers due to increasing fees of gas.
The open interest in Bitcoin options has increased by 118% to reach $8.4 billion. The rise of the (BTC) price to a new all-time high spurred this increase.
This rise, combined with the increase in open interest in BTC options, has stemmed in a notable $3.8 billion expiry set for the 29th of January.
Bulls are currently buying the dips as the bitcoin corrects. This is in the 20-day exponential moving average ($34,241) of the bitcoin. The bulls control the market according to the upsloping moving averages and the relative strength index (RSI). If they succeed in pushing their way up, the price could go as high as its all-time high record at $41,959.63. If the bulls can push the price above that, the bitcoin may rally towards the $50,000 target.
As usual, when bitcoins rallies and stabilizes, the other altcoins ride on their bull run to gain in the market.
In Chainlink(UNI), we see that the upsloping 20-day EMA ($16.25) and the RSI near the overbought zone indicate that the bulls are in control. If they can maintain the price above $21.5709, the altcoin may retest $22.96.
Also, for Uniswap (UNI), which is also currently in an uptrend. The upsloping 20-day EMA ($6.15) and the RSI in the overbought territory indicate that the bulls have control.
If they succeed in pushing the price above $9.3776, the rally could extend to $12.4597 and move to $15.
In conclusion, the crypto market seems to still be in an uptrend, despite some dips here and there.
