In brief:
- The Bitcoin dominance on Coinmarketcap is steady at around 65%.
- Ethereum’s dominance in the market currently stands at 8.23%.
- In the past few days, ETH has had a hard time reclaiming the $140 support zone.
- The ETH/USDT 6-hour chart is exhibiting bearish signs that are further confirmed by a possible death cross on the daily chart.
The Bitcoin market dominance is one tool used by crypto traders to determine whether there is an alt-season on the horizon. At the time of writing this, Bitcoin’s dominance is steady at around 65% according to Coinmarketcap with that of Ethereum (ETH) at 8.23%. Such dominance of BTC is indicative that an alt-season will have to wait till all markets, both stock and crypto, settle down due to the economic impact of the Coronavirus.
6-Hour ETH/USDT Chart
Further analyzing the 6-hour ETH/USDT, all analysis points towards a bearish future for the coin. To begin with, ETH is exhibiting a wedge formation. In this case, it is a symmetrical wedge. Such wedges usually do not give a clear sign as to what direction the price is headed but we shall attempt to find out.
Secondly, ETH/USDT is exhibiting a decrease in trade volume thus indicating the wedge will resolve with the price dipping further down and possibly retesting the 0.236 Fib level at $124.71 and/or the previous low at $85.51. There is also some level of support at around $117.
Death Cross on the Daily ETH/USDT
Further zooming out of the chart and analyzing the daily time-frame, we see that ETH/USDT is set to experience a death cross in the coming days. The 50 (white) moving average and the 200 (green) moving average look set to converge in the near future. As explained in an earlier article, a crossing by these MAs is confirmation of a bear trend. The last time this happened for Ethereum was in September 2019. Back then, it resulted in ETH finally finding a bottom at around $117 which is also a support zone for the coin.
Conclusion
In conclusion, our favorite alt-coin of Ethereum looks set for a bearish future based on the observation of decreasing trade volume, a wedge about to resolve to the downside and a death cross forming on the daily chart. Additionally, the Bitcoin dominance has held well around 65% thus proving that traders are using BTC as a safe haven during these uncertain times.
As with all technical analysis, the reader is advised to have their eye out for any fundamentals that may sway the charts. Therefore, it is advised to place stop losses at appropriate levels to mitigate against such moves.
(Feature image courtesy of Eva Darron on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
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