In financial markets, cycles alternate between bear runs and rallies as investor’s activities change due to determining events. In the same perspective, the Crypto market also oscillates between bear and bull trends. This is because the market is maturing and the magnitude of volatility is reducing.
Ethereum (ETH)/USD pair is also stabilizing and volatility is becoming less pronounced unlike the case for the 2018 period. Projections show that the bulls will resume in the short term. Afterward, a decline could ensue as the price retraces to consolidate the gains.
ETH Establishes A Trend Line
Amid the bearish market momentum, ETH/USD has established a new resistance level at the price point that used to be the support zone. This has, therefore, created a new trend line that is will be the new playing ground for the second largest cryptocurrency after Bitcoin.
Since the price range for the short run is evident, bulls are expected to take over in the coming weeks. According to a price analysis by a leading UK-based news center, ETH/USD is expected to rally in the coming weeks. This is because the second-largest Crypto is slowly moving towards the 38.2% fib retracement level against the peak price.
Can ETH/USD Rally More Than Bitcoin
In the context of the bull projection, it remains uncertain whether ETH would surpass BTC in being the most bullish Crypto in the market. However, there are some odds that ETH could outperform BTC in the period under review.
This assumption is further supported by the RSI and Stochastic RSI which strongly indicate that ETH could retest the $200 mark. Nonetheless, investors can expect to see sideways price movements occasioned by events that trigger shocks.
What Does This Mean For Altcoins?
If the forecast is realized and Ethereum (ETH) trades along the new trend line, the price could rebound in the short run. In this event, the prolonged Altcoin bear runs could be reverted. This is because a stronger Ethereum could attract investors’ interest other Cryptos such as Ripple (XRP), Litecoin (LTC), etc.
For an Altcoin season to ensue, the first indicator will be a declining Bitcoin dominance which stands at 68%. However, a plunge of the dominance will be preceded by a decline of the 21 days ETH EMA.
History Repeating Itself
The projected Altcoin season that is expected to start with the projection of a short term ETH gain reminisces the market situation in December 2017. At the time, BTC peaked at $20, 089 on 17th ahead of Altcoins. In the same perspective, BTC Has already peaked for 2019 and it is time for Altcoins to follow being led by Ethereum (ETH).