Ethereum and various altcoins turn Bullish against BTC values after Bitcoin dominance level decreased to 66.60%. History also indicates that the prices of ETH compared to other coins always recover soon.
After the recent price fluctuations in Bitcoin. ETH, XRP and other alt-coins have also seen the major drop, against USD. The sudden dump happened in the last week. But, was it the temporary one ? Answer is. Yes ! Definitely, we have found a temporary bottom here, but also got the hike in the prices against BTC values or, within BTC pairings. ETH/BTC is up +32%, XRP/BTC +27% and XLM/BTC has gained +29% during this time.
Closer look to the Altcoins
Talking about the altcoins market, it was in continuous down trend since July 2019. Hence, market cap has also been in a prolonged downturn. Taking the example of year 2018 for the alts, it's the same situation, when the market reached a $126 billion capitalization.
Taking the reference from the current crypto market, it’s resting on an important order block, which can be said as support and similar trading range was found back in September to November 2017. Based on the view, it’s so clear to observe the alt market to become bullish again. Meantime, we might find downwards trend again, if it breaks support as result BTC price will collapse from $7800 level.
BTC Price Role vs. Altcoin Price Action
As we all know, 'History always repeats itself in this Cryptocurrency market.' The same impact can be soon observed within the prices of alts. Historical BTC vs. Altcoins price action is the best example to prove this scenario. Several coins and tokens can perform at its best level after seeing a slow upward move from Bitcoin. History also tells that Alt coins price can easily increase within BTC values (even in USD pairs), when its price is slowly ascending. Meanwhile, slow price movement of BTC along with the steady decrement in the overall Bitcoin dominance level, indicate the positive signal for the alt coins. Means, we can soon expect the rally of alts.
What will happen after Ethereum 2.0 release?
As expected, Ethereum 2.0 will launch in the Q4 of 2019. So, any time we can see the FOMO of ETH in the Crypto market as a bullish breakout awaits Ethereum. It's often the main indicator for alt-coins movement, according to the coin history. As we all know, ETH is the 2nd largest cryptocurrency by market cap, according to the data shown on the Coinmarketcap.
So, because of the Ethereum market cap size as well as the majority of the smaller coins that built on ETH platform, which is known to be ERC-20 tokens, can predict it to be the game changer for various alts. It's also a possible trigger, playing an important role in the next Rally and FOMO, by impacting market to move upwards. So, It may be the time of 'Buy the Rumor and Sell the News' for the traders after ETH Price typically runs up prior to the event.
Points to remember while looking to the ETH/USD/BTC charts?
It's very important to check the similarities of the chart pattern, which is to be shown by ETH/USD chart vs. Total alts market capitalization chart.
If you are well aware about Falling Wedge Structure within technical analysis and Crypto trading terminologies, then you must know that ETH is hovering within the mentioned structure pattern. It has been in a downtrend, after touching the $368 during the end of June.
Previously, Ethereum price bounced after hitting low to $155-160 (previously a resistance in 2019), which made it an important support now. So, it’s high time for ETH to moon.
So, be prepared with your extra funds to invest at the right time. It's your choice to take the profits or, HODL for some months to find ETH prices above $500 zone. But, make sure to book your profits from time to time.
Disclaimer & Suggestion : Please always do your due diligence before investing in any cryptocurrency or project. This should not be treated as financial advice.