Ethereum Price Analysis: With BTC Dominance Firmly at 65%, What’s Next for ETH?

In brief:

  • The Bitcoin dominance on Coinmarketcap is steady at around 65%.
  • Ethereum’s dominance in the market currently stands at 8.23%.
  • In the past few days, ETH has had a hard time reclaiming the $140 support zone.
  • The ETH/USDT 6-hour chart is exhibiting bearish signs that are further confirmed by a possible death cross on the daily chart.

The Bitcoin market dominance is one tool used by crypto traders to determine whether there is an alt-season on the horizon. At the time of writing this, Bitcoin’s dominance is steady at around 65% according to Coinmarketcap with that of Ethereum (ETH) at 8.23%. Such dominance of BTC is indicative that an alt-season will have to wait till all markets, both stock and crypto, settle down due to the economic impact of the Coronavirus.

Ethereum Price Analysis: With BTC Dominance Firmly at 65%, What's Next for ETH? 16
Current Bitcoin market dominance courtesy of Coinmarketcap.com

6-Hour ETH/USDT Chart

Ethereum Price Analysis: With BTC Dominance Firmly at 65%, What's Next for ETH? 17
6 Hour ETH/USDT chart courtesy of Tradinview.com

Further analyzing the 6-hour ETH/USDT, all analysis points towards a bearish future for the coin. To begin with, ETH is exhibiting a wedge formation. In this case, it is a symmetrical wedge. Such wedges usually do not give a clear sign as to what direction the price is headed but we shall attempt to find out.

Secondly, ETH/USDT is exhibiting a decrease in trade volume thus indicating the wedge will resolve with the price dipping further down and possibly retesting the 0.236 Fib level at $124.71 and/or the previous low at $85.51. There is also some level of support at around $117.

Death Cross on the Daily ETH/USDT

Further zooming out of the chart and analyzing the daily time-frame, we see that ETH/USDT is set to experience a death cross in the coming days. The 50 (white) moving average and the 200 (green) moving average look set to converge in the near future. As explained in an earlier article, a crossing by these MAs is confirmation of a bear trend. The last time this happened for Ethereum was in September 2019. Back then, it resulted in ETH finally finding a bottom at around $117 which is also a support zone for the coin.

Ethereum Price Analysis: With BTC Dominance Firmly at 65%, What's Next for ETH? 18
Death cross forming on the daily ETH/USDT chart

Conclusion

In conclusion, our favorite alt-coin of Ethereum looks set for a bearish future based on the observation of decreasing trade volume, a wedge about to resolve to the downside and a death cross forming on the daily chart. Additionally, the Bitcoin dominance has held well around 65% thus proving that traders are using BTC as a safe haven during these uncertain times.

As with all technical analysis, the reader is advised to have their eye out for any fundamentals that may sway the charts. Therefore, it is advised to place stop losses at appropriate levels to mitigate against such moves.

(Feature image courtesy of Eva Darron  on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
--- --- --- ---
--- --- --- ---
--- --- --- ---
USD Coin0.9989 0.16 % 0.08 % 0.04 %
--- --- --- ---
--- --- --- ---
--- --- --- ---
Cardano0.9566 0.22 % 0.68 % 6.96 %
--- --- --- ---
--- --- --- ---

bitcoin
Bitcoin (BTC) $ 28,497.00
ethereum
Ethereum (ETH) $ 1,730.63
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 298.17
xrp
XRP (XRP) $ 0.380244
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.451732
solana
Solana (SOL) $ 41.14
dogecoin
Dogecoin (DOGE) $ 0.07968