The leading smart contract crypto is churning in a zone of thick resistance, and could explode out of it when Bitcoin takes some time off from its monster rally. Although ETH/USD itself has clearly broken out of a critical resistance at $180, this breakout may have been tempered by the Bitcoin rally.
ETH price is respecting the typical dynamic between Bitcoin and altcoins; namely, when Bitcoin is doing something dramatic, altcoins take a back seat. On the ETH/USD pairing, Ethereum has gained about about 38% since May 7, versus as much as 42% gains on Bitcoin – with steep dips marking every Bitcoin pump.
We may perhaps see a clearer view of the action from the ETH/BTC pairing. We can see that Ether is sold in favor of Bitcoin when the latter is running. But the decline might be held at a strong support, at the 0.025 BTC price.
Stepping back to the weekly timeframe, we can see that this 0.025 level is very important to hold. Ironically, any continuation to the current Bitcoin mega-run – fueled by a rash of fantastic news during Consensus 2019 – could push Ethereum under this critical support level.
It seems like a Bitcoin pullback must be coming soon, however – and in this case, ETH/BTC is likely to bounce off this critical support. Then, it may be time for leading altcoins to have their chance in the sun.
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