On higher timeframes, Ethereum [ETH] has recently displayed an ascending triangle pattern. Despite a notable 16.6% decrease from Tuesday to Friday, this decline remained within the context of the bullish pattern, offering hope of a potential recovery for long-term investors.
One notable observation is Ethereum’s struggle to keep pace with Bitcoin [BTC], typically considered a market leader in the cryptocurrency space. This inability to match BTC’s performance has been a source of frustration for many investors, compounded by the Ethereum Foundation’s recent sale of 1000 ETH, which failed to buoy market sentiment.
Filling the Daily Wick since Early August
The previous rally in February has been completely retraced, with the losses experienced in the latter part of July leading to a test of the $2171 zone. This zone was revisited on Friday, September 6th, reinforcing its significance.
The bearish trend since early August has been evident, as indicated by the presence of red bars on the Awesome Oscillator histogram below zero, signaling strong bearish momentum that continues to dominate the market sentiment.
Furthermore, the On-Balance Volume (OBV) has been steadily declining, reflecting consistent selling pressure. Just two weeks prior, ETH’s price was above $2.6k, offering a glimmer of hope for recovery. However, the subsequent breach of the support zone that had previously served as a range high in early 2024 suggested further potential losses, highlighting the prevailing dominance of sellers.
Weakness in Ethereum vs. Bitcoin Performance
Analysis of the weekly chart comparing Ethereum to Bitcoin illustrates a sustained downtrend since early 2023. The breach of the 2022 low at 0.056 in 2024 marked a significant milestone, with ETHBTC’s continued decline reinforcing the overall weakness in Ethereum’s performance.
Ethereum’s lackluster performance has raised concerns about the broader altcoin market’s ability to thrive in the current environment. Established coins may face challenges attracting new capital amid a potential bull run, further compounding the uncertainties surrounding market dynamics.
Disclaimer: The views expressed herein are personal opinions and should not be considered as financial, investment, or trading advice