Markets tend to behave in large cycles. One of these is the previous Bitcoin Price Cycle (BTC) from 2014 to 2017. However, there are several smaller cycles in these cycles that can often be repeated.
A similar approach and analysis can be made for Ethereum (ETH), which has surpassed BTC since the beginning of the year, as most of the uptrend movements largely pushed up to test previous resistance levels.
The weekly chart shows a clear break above the 100-week and 200-week moving averages (MA) earlier in the year. Breakout that also caused the price to break above the critical resistance level of $ 300.
This $ 300 barrier has been a resistance area for almost two years since the Ethereum bear market started in February 2018.
Since this accumulation period, the price of Ether has fluctuated between $ 80 and $ 300. Finally, after almost two years, ETH / USD broke the $ 300 mark and targeted the next resistance range around $ 500.
However, a breakout is unlikely in this area, as the cryptocurrency markets are still consolidating in a new cycle. This structure is relatively dull and does not give much twist.
Another clear indication of this build-up period is the incentive to continuously test each previous resistance zone as support. These tests provide an extra boost for further growth.
A higher peak has already been set as the chart shows the current trend. Following this rally, the market is looking for a clearly higher low point to confirm the current trend change.
However, the main question in this regard is at what level can an upper floor be set? The deeper answer to this question is that previous resistance of $ 300 has been supported.
But even if the $ 300 level is not supported, the 200-week moving average of $ 220-245 can support and confirm a higher low. These two areas need to be monitored so that investors can see if buyers are coming in. The $ 300 level has already been held up as support, which increases the possibility that Ether will stay above that level.
Second, as markets tend to move in large cycles, new potential opponents can be identified. Impulse movement usually lasts for the shortest period, with corrective and cumulative movements lasting the longest.
If the $ 300 range supports support, new levels and resistance levels can be identified using the horizontal price levels and the Fibonacci Extension Tool.
The following potential resistance levels can be found using these $ 600 and $ 775-825 indicators and tools.
This could mean that Ethereum could increase more than 100% in the next bullish move, taking the markets to the next level. If Ethereum 2.0 is released, it will only increase in strength, indicating that it is likely to reach the second level.
There are several arguments and analyzes that can be deduced from the ETH / BTC diagram. Some draw the line between the 100-week moving average and the 200-week moving average, indicating that the bullish move has been rejected by the 100-week moving average.
However, there is another indication that the price of Ethereum has fallen in the last quarter of the year.
The lower plots were established in December and January, after which there was a large driving movement. Therefore, the best periods to enter the ETH in December and January are a move that has historically rewarded patience with investors.
If the low completes and history repeats itself, potential resistance ranges can be found at 0.058 and 0.072 sitting, similar to US dollar values.
The daily ETH / BTC chart shows clear support at the 0.03 level sitting. However, this level of support has undergone several tests, which means that another test is likely to push the price south.