Bitcoin (BTC) approaches perhaps the most important resistance level on the 2019 chart in a powerful short-/medium-term uptrend, many altcoins have actually been outperforming Bitcoin. Ethereum (ETH) had a good day a few days ago, taking about 7% gain versus Bitcoin, even as Bitcoin was itself rising. Now, Ethereum still looks interesting on the daily chart, but it is getting rejected pretty heavily just as it engages local resistance.
We start on the ETH/BTC daily, and see the very contentious price action around the current price. Generally looking like a bull consolidation before another leg up, the leading altcoin has deep wicks in both directions, on slightly elevated volume. This implies that a contest for Ethereum’s new uptrend is going on.
The histogram here has started taking a bearish bent, with an accelerating expansion profile; however, the RSI on the local market is very bullish, with a sharp and clear divergence. We can gather from all this that bears are keen on keeping Ethereum where it is, possible in order to accumulate.
Moving to the 4-hour ETH/Bitcoin chart, we see that price is holding at a regional inflection point, after retaking it in the past couple of days. The RSI, overbought on the 15th, has since cooled but is perhaps signaling a bearish divergence (with the wicks it is not totally clear). The histogram here had been looking good, with a bullish arch accelerating up; but this profile looks like it will be fractured in the next candle close (it will be closed when this piece goes to press).
Some consolidation around here, letting the EMAs catch up to price, would help Ethereum build a base for potential leg up within the short term uptrend.
Finally, on the daily USD pairing, we see a similar bull consolidation formation, also with contentious wicking both up and down. Support on the downside has been holding here, derived from regional support.
The RSI here is almost overbought, likely helped along by Bitcoin’s price rise. The histogram here is doing an interesting plateau, and at present looks like it wants to curl up. In general, ETH is far flung from the EMAs, which makes consolidation around this level somewhat likely.
On the whole, ETH is still solid in the first steps of its new uptrend. This uptrend could translate into a longer-term uptrend, but Ethereum needs to show more for that to happen.
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