On May 26, the cryptocurrency market was buoyed by Bitcoin (bitcoin) fell to $28,000, while ether (Ethereum) briefly fell below $1,800. The ETH/BTC pair also broke below what traders consider an important uptrend line, a move that traders said could lead to a correction to new lows in ether prices.
Here’s a rundown of what several analysts in the market are saying about lower prices Ethereum and what it means for its price in the short term.
Price consolidation will eventually lead to wild swings
Independent market analyst Michaël van de Poppe outlines support and resistance levels to watch, he post The chart below shows Ether trading near its lows.
Van der Poppe said,
“The question will be whether we can bounce back from here and break the $1,940 level. If that happens, I’m assuming we’ll keep paying $2,050. If not, then the market is watching
ETH could make new lows, forming a bullish falling wedge
According to Twitter analyst Crypto Tony, the price of ether is “still finding that leg to load.”
While it may look negative, it’s actually a positive sign, according to Cointelegraph contributor Jon Morgan, who noted that the pattern outlined on the chart is a falling wedge, a “bullish standard candlestick/bar. The chart pattern shows that the market has taken this to an extreme and is likely to reverse.”
“The rate of expectations for creating a sharp corrective higher or a brand new uptrend is very high.”
Bitcoin dominance rises
According to economist Caleb Franzen, the ETH/BTC pair lost key support, which is notable because:
“This means that at least one of these statements is true: $ETH is weakening relative to $BTC; $BTC will outperform $ETH; Alts will underperform $BTC.”
add to ETH/BTC discussionTwitter user CrediBULL Crypto noted that prices “started to move lower from some of our local lows.”
“Any relief here is temporary until we get to the bottom of the range, imo. In fact, we may go even lower than imagined here before we start the recovery, but once we hit my target, We will evaluate.”
Overall, continued weakness in the ETH/BTC pair has the potential to lead ether and altcoin prices lower, while BTC is likely to remain at current prices or even move higher as traders move from underperforming positions to bitcoin.
The overall cryptocurrency market cap is currently $1.235 trillion, with Bitcoin dominance at 46.2%.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.