Ethereum is taking advantage to gain ground while Bitcoin remains dormant, which seems to be heralding the start of a new bullish altcoin storm.

There is still a good way to go, but the exhaustion of sellers is increasingly noticeable, announcing the possibility that the bottom of the fall has already been reached.

At the time of this writing ETH is trading at $2,107.99, accumulating a gain of 0.94% in the last 24 hours and 15.67% in the last 7 days.

Despite all the negative that was the dump of currencies towards exchanges, and consequently the wave of sales, we still see that it was really nothing more than a simple correction, and could soon resume the dominant trend.

The ETH deposit metric on exchanges still holds in a fairly large lateral range, which has functioned as a break from a large larger downtrend.

This indicator is used to measure the scarcity of cryptocurrencies. The greater the scarcity, as is the case with Ethereum, the higher the price.

Technical analysis of the daily chart Ethereum vs Bitcoin

What matters most today is the great bullish awakening of Ethereum against Bitcoin, jumping with large gains that completely overshadow the bearish volume of previous days.

The awakening of ETH occurs right over a very relevant support zone, surrounding 0.058 BTC.

Now with the upside, several immediate resistances have broken, giving way to a short-term bullish transition.

It is very likely that Ethereum is about to look for the next resistance, located at 0.066 BTC. But, if we take into account the previous big uptrend, and the big support defense at 0.058 BTC, it is possible that no resistance is too relevant, which could lead us to new annual highs very soon.

Daily chart Ethereum vs Bitcoin. Source: TradingView.
Daily chart Ethereum vs Bitcoin. Source: TradingView.

Low BTC strength slows ETH rally

On the weekly chart of the Ethereum price, we see a medium-and long-term bullish trend intact, but with difficulties to be resumed, due to the low strength of Bitcoin.

Last week we saw how the price hit and strongly rejected support at $1,728.74. This behavior may be pointing to the possible bottom of the fall, but to confirm it, the resistance at $2,771,92 must be traversed.

Should that support at $1,728. 74 be traversed (unlikely scenario), it would be making way for a wider drop to probably $1,500-$1,400.

Analysis of the weekly Ethereum price chart. Source: TradingView.
Analysis of the weekly Ethereum price chart. Source: TradingView.

Short-term key levels

In the daily timeframe we see that ETH is creating a short-term uptrend, after breaking the immediate resistance at $1,989.52.

Yesterday the price was hampered by resistance at $2,278.82. If the behavior continues as it goes, it is likely that we will see this level being crossed soon, giving way to purchases up to a minimum of $2,610.18.

However, the real positive signal, of a resumption of the medium/long-term trend, will occur when the resistance at $2,884.94 is crossed.

In the bearish scenario, a break in support at $1,728.74 will announce the extension of the corrective process that the entire crypto market is experiencing.

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