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Crypto Point of the Weekend: Ethereum on the rise, will it take altcoins on its rebound?

In this second crypto point of the weekend, we will continue our analysis in line with the last week. Since last Sunday, the market has continued its rebound. Ethereum, as part of some news related to The Merge, surged higher last night. This allowed some altcoins to break an initial resistance. However, nothing is decided yet. So, let’s head over to TradingView to take stock.

This market analysis is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

Is the market still in the same situation?

Price of the total market capitalization of cryptocurrencies (1D)

Since last week, the situation has not really changed for the total market capitalization. You can see, the range is still relevant. In the space of a few days, we have witnessed a rebound on the $833 billion to find themselves, at the present time, on the resistance to $963 billion. As mentioned last week, until we have a resolution of the range, it is useless to speculate on a future movement.

Thus, the levels mentioned last week are always to be kept in mind. If the market breaks up the resistance, we could see a return of market capitalization on the lower limit of the summer 2021 support. For the moment, nothing is confirmed and it will largely depend on the fluctuations of Bitcoin and Ethereum.

Altcoins are still under resistance

Market capitalization price of cryptocurrencies excluding Bitcoin and Ethereum on a daily scale
Price of cryptocurrency market capitalization excluding Bitcoin and Ethereum (1D)

About the altcoins, the situation has hardly changed since the latter did not record a peak above 394 billion dollars. However, a high above 340 billion has been registered, which demonstrates the interest of buyers, in the short term, for altcoins. Currently at the same level as the recent high at 381 billionthe objective is to register a new high to relaunch a bullish momentum on a daily scale.

For the moment, nothing is decided yet, it will be important to wait for the closing of this Sunday which will also make it possible to obtain a new weekly closing. If the altcoins manage to overcome the $394 billion level, we may have two bullish objectives in our sights:

  • $413 billiona former support that did not remain as resistance
  • $456 billiona daily resistance that altcoins have repeatedly been rejected by.

Conversely, a loss of 340 billion will inevitably bring the market back to its previous low point.

A bitcoin that prolongs its underperformance situation

Bitcoin dominance course on a daily scale
Bitcoin Dominance Course (1D)

Although last week, we could have considered maintaining the king of cryptocurrencies on its pivot zone (represented in blue), the market decided otherwise by extending the underperformance of bitcoin against the rest of the market. Indeed, in just one month, it went from 48% to 42% dominance. The current challenge, if bitcoin wishes to stay the course in this bear market, is to retake the pivot zone at 43%.

Very recently, bitcoin dominance broke its lows, allowing altcoins to continue their rebound in the markets. If this dynamic tends to be preserved, we can consider, before the 40% dominance, two intermediate objectives where the king of cryptocurrencies could recover:

  • The 42.20%a level having acted as support and resistance on the dominance of bitcoin
  • The 41.32%support as of February 2022

Ethereum temporarily takes over the cryptocurrency market?

Ethereum price against bitcoin on a daily basis
Ethereum price against bitcoin (1D)

Since last week, the daily bullish trend has extended on the ETH/BTC pair. The asset managed to hold onto a major level before triggering an impulse that broke the upside 0.059 Bitcoin to look for the upper level which is at 0.065 bitcoin. This last level, having acted as major support for several months, has never been restest. However, yesterday Ethereum did so, confirming the bearish break that took place in May.

This level is undoubtedly very important and should undermine the current momentum of Ethereum. Although we may have a bullish excess reaching the 0.069 Bitcoin, a weekly close above these levels will be very complicated. These are likely major resistances where Ethereum could find itself failing before returning to lower price levels. Indeed, do not forget that the weekly trend is bearish. Don’t be surprised by technical bounces that are necessary to correct bearish excesses.

What about decentralized finance?

Price of the DeFi Index Perpetual Futures against the dollar on a daily scale
DeFi Index Perpetual Futures Price (1D)

In the same way as the index analyzed last week, that of altcoins, let’s review today that of decentralized finance. This FTX index brings together a basket of assets from the Challenge. Thus, with a small sample of cryptocurrencies, we can know the main trends of the sector, the situation in which it finds itself. After an explosion in 2021 and an all time high in May 2021 at $17,137the index entered a range between May 2021 and May 2022 before breaking down.

Returning to levels not seen since the end of 2020, decentralized finance is being challenged within a relentless bear market. Rebounding for a few weeks with a daily upward trend, it remains of the order of a technical rebound which does not give any upward momentum on a weekly scale. In this context, considering that the trend should continue its way, we can have in mind a major key level for the moment: the 3,400 dollars. If the price reaches this level, we can favor a rejection of the price with, possibly, a small bullish excess.

Here we are at the end of this second crypto point of the Weekend. Like last week, the total market capitalization is still moving within its range with, in parallel, an bitcoin arching back. So this allows Ethereum and altcoins to take advantage of it temporarily. However, whether it is a rebound or a drop in the king of cryptocurrencies in the market, sooner or later he will resume his leadership role to give direction to the rest of the market. Remember that the weekly trend is, for the moment, still bearish. Thus, if you have not had the opportunity to reload on the lower limit of the current range, avoid buying the upper limit on which the assets could be rejected.

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