Ethereum’s Ether (ETH) is taking advantage of Bitcoin rallying early this week and looks to break a key resistance level on the road to $300.
Bitcoin (BTC) has been showing strength in recent days as the price rallied from $9,300 to as high as $9,800. However, more strength is seen from Ethereum’s Ether (ETH) — the second-ranked cryptocurrency by market capitalization — as this cryptocurrency rallied from $225 to $246.
Let’s look at the ETH charts as Ether has been outperforming BTC significantly in recent days. The main question is: can Ethereum finally start catching up to Bitcoin?
Crypto market daily performance. Source: Coin360
Ether facing $250 resistance as the final hurdle before accelerating towards $300
The crucial support to hold, between $215-220, has seen a brief test and immediate bounce up. Such a bounce implies that buyers are eager to step in and are significantly pushing up the price.
ETH/USDT 1-day chart. Source: TradingView
Essentially, Ether is currently acting above the 100-day and 200-day Moving Average (MA), which is a bullish indicator. Alongside with that strong signal, the volume has been increasing as of late.
Often, volume precedes price, and combining this fact with the sideways range ETH has been in, an increase in volume shows accumulation.
Similarly, the price has been in an uptrend since March 12, as the cryptocurrency is continually flipping the previous resistance into support. The former S/R flip was done with the $217-222 area.
Such a support/resistance flip implies further upwards strength, with $250 as the next target. The price of Ether is staying fairly close to this resistance zone.
If ETH breaks $250, then the $290 level may not hold like last time, as that’s not a significant resistance zone. More likely, ETH/USD may see a quick rise to $330 or even $360.
Such a rally would classify a new higher high, which is another bullish sign. The term “disbelief” could soon be applied.
Short-term test of $234 is not out of the books
ETH/USDT 4-hour chart. Source: TradingView
The 4-hour chart for Ether is showing a clear breakout from a downtrend with the price rallying towards the range resistance at $247-252.
However, does that mean that Ether is likely to break $250 in one-go? Definitely not because more ranging is expected before a substantial breakout through the resistance. In other words, this would mean Bitcoin breaking the $10,500 barrier.
Short term, a potential retrace towards the $232-235 level is not out of the books and would be healthy. In that regard, the previous support of $234 should act as support, fueling a potential rally above $250.
Finally, as the resistance between $247-252 has been tested several times, the resistance becomes weaker. A renewed test of the resistance zone would most likely end up in a breakout to the upside.
Total altcoin market capitalization holds important $82 billion level
Altcoin market capitalization cryptocurrency 1-day chart. Source: TradingView
The altcoin market capitalization is showing strength, as it’s still acting above the 100-Day and 200-Day MA. Similarly, the required support test of the $82 billion levels occurred and confirmed the S/R flip.
To justify further upwards continuation, $82 billion had to hold as support, and it did.
Thus, continuation above $95 billion resistance seems likely. This would also open the door to the $113 billion and $135 billion levels alongside massive rallies for most altcoins across the board.
As the total altcoin market capitalization is heavily lagging behind Bitcoin, arguments could be made that Ether is a significant trigger for altcoins to start rallying.
Once Ethereum moves, the rest of the altcoins usually follow suit. This is because Ether is the biggest altcoin and the majority of the projects are built on the Ethereum network.
Moreover, the price of Bitcoin is currently 50% below the all-time high. Ether is still hovering at 80% below the all-time high, which shows the weakness of altcoins in past years, significantly underperforming on Bitcoin.
Now, post-halving, the price of Bitcoin is stabilizing and the hype is arguably shifting from Bitcoin towards altcoins as seen in recent altcoins surges including Ether.
ETH still in consolidation with the BTC pair
ETH/BTC 1-day chart. Source: TradingView
The price of Ether is still in consolidation. Constant lower highs and higher lows are typical signals of compression, which often leads to expansion and an increase in volatility.
The key area to hold for ETH is the 0.023 sats (BTC) level. This can still be tested as potential support, confluent with the 100-Day and 200-Day MAs. As long as that holds, the top-ranked cryptocurrency by market cap can be considered bullish, and further upwards momentum is likely.
If ETH holds that level, the next significant resistance zone to break through is between 0.0275-0.03 sats. If Ether can crack that resistance zone, 0.04 sats is the next target.
If Ether decides to rally with Bitcoin, a significant surge above $360 could occur, and price levels of $500 shouldn’t come as a surprise.
On the flip side, if the price of Ether dives under the 100-Day and 200-Day MAs, a retest of the lows becomes likely. Keep in mind that the 100-Day and 200-Day MAs are crucial indicators for bull/bear momentum here. Losing them would indicate further downwards pressure.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.