The Ethereum (ETH) market is currently experiencing a significant downturn, with its price against Bitcoin (BTC) hitting a 910-day low. However, some market observers are wondering if this could be the cycle’s bottom. Here’s a closer look at the situation:
In the world of cryptocurrencies, October has been generally positive for most assets. However, Ethereum has been an exception, with both social volume and price returns lagging behind.
Despite a 15% rally in Ethereum, discussions surrounding it have dropped by almost 20% compared to the previous week. Some investors are not overly concerned about this, as historical patterns in bull markets often indicate that Bitcoin leads the way in price increases, followed by Ethereum and then other large- and medium-cap cryptocurrencies.
One particularly intriguing chart is the ETH/BTC pair, which is currently approaching a 910-day low. Historically, the last time the price reached such levels, it was followed by a significant upward movement.
Several users and traders are optimistic about Ethereum’s future, as both the price action and Elliott wave count appear bullish. There are expectations that the price could climb beyond $2,000.
However, it’s important to note that Ethereum’s price is still trading below a 190-day descending resistance trendline, which may present a significant obstacle.
On a more positive note, the weekly chart for ETH/BTC reveals some potential signs of a price bottom. The price has bounced off a confluence of long-term support levels at ₿0.051, which is marked by a 1400-day ascending support trendline dating back to the start of 2020 and a descending parallel channel that has been in place since June 2022.
Additionally, the Relative Strength Index (RSI) has fallen into oversold territory with a value of 27, which is the lowest weekly RSI value since July 2019. This could be an indicator that a potential rally is on the horizon.
If Ethereum manages to rally from this support level, a 20% increase to the channel’s resistance trendline at 0.063 is a likely scenario. However, it’s essential to remain cautious, as a breakdown from the long-term ascending support line could lead to a 30% drop to the next support level at 0.037.
In conclusion, the Ethereum market is at a critical juncture, and investors are closely watching whether the current support levels will hold and lead to a potential price rebound. However, as with any investment, it’s crucial to conduct your own research and consult with professionals before making financial decisions, as market conditions can change rapidly.