April was generally fortunate for the cryptocurrency market. However, Ethereum (ETH), the second largest cryptocurrency in the world, struggled to make a rise. Is it set to go higher, or is it still in decline? What might happen in the next few weeks?
A few weeks ago, we compared ETH to BTC on the crypto market. Today, we do that in comparison to the dollar (USD).
Revelations from the United States
It could have been assumed, after Federal Reserve System’s (Fed’s) May readings, that cryptocurrency rates noted for USD can stand out a characteristic variability. However, the readings did not carry any significant signals, that would implement noticeable dynamics. In fact, there should be no visible correlation between these markets. That is probably a matter of time, the investors’ awareness, and above all, the development of the cryptocurrency market.
From the perspective of expectations, the last days at the ETHUSD are a constant apathy of moving in the parallel channel, in which another channel was created. That means big indecision and waiting for a strong signal to continue or change the trend.
Next step: the bear market stands
Analyzing the market fluctuation on a smaller interval, we can find an attempt to break the upward trend. The defense of the level 148.00 has set another line parallel to the existing channel. At the moment, the upward movement is still the dominant direction. However, after reaching the upper resistance at 184.71, ETHUSD activated the supply side to implement profits and set the upper line of the downward channel.
The prospect for May seems rather ‘beary,’ although we can currently expect the movements up to 168 USD, which are the resistance to the downward trend. If the recent increases in BTC activate the demand side on ETHUSD, there will be a possibility of one more dynamic upward wave and reaching the level of 176 USD.
Nevertheless, by interpreting the current overwhelming power of sellers, going down to 145 USD is a technically designated support point. It is not accidental, as the upward trend line also goes in this place.
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