Ethereum Stands out from the Market

News • 2021/07/05 • by

Bitcoin / US Dollar

New trials from Bitcoin's side to reach the $36,000 compression point were unsuccessful, and the price managed to climb until $35,000, correcting today at $34,300. As we can observe in the price chart, the current price range extends from $32,000 to $35,000. All these prices laid below the $36,000 compression point, which means that this point had transformed into a resistance level at a local level.

Breaking the local resistance level could become the spark to bring the next bullish phase in the Bitcoin market. This spark could look out to fuel the market for the next bullish point at $40,000 and $47,000. The fact that a resistance level is tested several times has increased probabilities to break and move towards the opposite direction, leading us to overweight our bullish prediction for the short-term future.

The expectations in the market have turned up, and the news has a positive influence over the trades continuously. On the fundamentals side, the drop in the mining difficulty during the last two weeks (due to the Chinese ban of mining activities) will probably affect Bitcoin's price fluctuation, providing more opportunities to the rest of the miners to gain a larger portion network. If the network reduces its capabilities, there might be delays in the transactions, causing troubles on the network and possibly panicking new investors.

The trading volumes have moved to lower levels, a negative signal for a potential bullish turn. In contrast, the moving averages have almost touched each other, showing that the market might be ready for a bullish change.

In the short-term diagram, we can observe that we dive deeper into the zone between $32,000 and $35,000, making it stronger and less flexible in the upcoming change. Every price consolidation strengthens the market depth and makes the certain zone stronger when there would be a need for further support.

Indicators

MACD index has been sustained in the positive zone, showing that the market would establish a bullish trend in the next period. The RSI index moved to value = 45, predicting a stable short-term future for the price.

Ethereum / US Dollar

Ethereum has made small climbs in the last few days, trying to escape the zone around $2,000 and reach the first bullish goal in the market, around $2,500. At this moment, the price has reached $2,300, making important claims every day to build a sustainable path towards new all-time high levels. As we have mentioned in previous articles, the price levels above the $2,500 line have remained unexplored in terms of support and resistance levels formation, showing that a potential break on the other side could bring radical changes in the price formation process.

On the positive side, we could mention that Ethereum's price has not formed a clear compression trend after the local correction, indicating that the market will try to recover sooner than expected in the short-term future.
The trading volumes have remained on the same level while the moving averages crossed each other, forming a "Golden Cross," which predicts a positive change in the price formation process.

Indicators

MACD index continues to rise day by day, bringing more optimism among investors about its next route and what steps will follow in the upcoming days. The RSI index jumped above the value = 50, settling down that the current status of the price can have a positive outlook for the short-term future, with small steps.

Ripple / US Dollar

The market has remained stable during the last few days, laying around $0.67. The zone between $0.50 and $1.00 is quite unexplored for Ripple, and every move in this space contributes to building new resistance and support levels. As we can see in the price chart below, there was a sudden jump from $0.50 to $1.00, leaving a gap in the price development.

The price development remains important on this site as there are no support levels that the price could bounce if there is a change in Ripple's mood. The lack of market depth will also make it difficult for Ripple to reach the $1.00 point again and start delivering bullish results. We expect that there would be a delayed reaction from the market, according to what will happen in the Bitcoin and Ethereum markets.

The trading volumes soared even lower, predicting less pressing on the price. At the same time, the moving averages are about to cross each other at the bullish formation and create a potential game-changer in the market.

Indicators

MACD index has remained steadily on the positive side, increasing day by day, proving that the market might bring a bullish wave in the next few days. On the other hand, the RSI index remains between values 40 and 45, keeping low expectations about a future bullish trend.

Litecoin / US Dollar

No changes happened in the Litecoin market as the price remained at $140, proving that the compression zone between $125 and $200 will become a reality for the next market. The first goal for Litecoin would be to catch the compression average at around $175. This would mark its pass on the positive side of the compression trend and gain more impact for second thoughts about its path.

The $200 point would mark a return on the bullish side, indicating that the market has overcome the bearish period for now. The sudden drop from $300 to $200 was a major shock for the Litecoin market, and its uptrend towards the previous points will be difficult, especially under the current circumstances.

The trading volumes have plummeted during the last days, while the moving averages will meet each other in the next days, forming a bullish signal. We should highlight that signals from moving averages might be misleading when the price has remained on compression mode for long periods.

Indicators

MACD index has given a positive streak during the last week, indicating that the market has become more friendly while the RSI index remains between values 40 and 45, predicting slow adaptations in the price formation.

Bitcoin Cash / US Dollar

The same situation with Litecoin can be depicted in the Bitcoin Cash market. The price remained above $500 but lower than the major support level at $550. The slow adaptations of the price in the current market changes indicate that investors think more than twice before placing their money in the market again.

If we compare the Litecoin and Bitcoin Cash diagrams, we can see that their price development follows the same style at the current moment. This might lead us to the fact that we can prepare pair trading between the two assets. This means that a change in the price of one asset will probably affect the other in the same way, sooner or later.

The sudden drop in the Bitcoin Cash market happened when the price dropped from $1,100 to $700 in just a day. This recovery will probably take more work, but the positive outlook will be determined from the rest of the strongest coins like Bitcoin and Ethereum.
The trading volumes have remained at lower levels while the moving averages will create a bullish signal in the next days, forming a "Golden Cross."

Indicators

MACD index has its route in the positive field while the RSI index remained around value = 45, predicting a stable path for the price formation.

Correlations

Bitcoin / Ethereum = 0.84 (- 0.12), Bitcoin / Ripple = 0.91 (- 0.04), Bitcoin / Litecoin = 0.93 (- 0.04), Bitcoin / Bitcoin Cash = 0.93 (- 0.04)
The differences in the small moves in the crypto market made the correlations split for a while, sustaining its cohesion towards the main direction of the market. Ripple, Litecoin, and Bitcoin Cash made slight changes in the correlation field between them and Bitcoin, indicating that Bitcoin has tried to make a move above the compression point at $36,000, making the rest of the market achieve higher price levels. On the other hand, Ethereum made a significant jump at higher levels, making its correlation with Bitcoin drop more than the rest. This change might spark reactions in the correlations with other crypto assets, shaping the next period in the market.