Ethereum gains, alt coin season coming?
Ethereum has one of its most bullish intraday sessions in more than a month. Altcoins higher as Ethereum drives higher.
Ethereum continues higher
At the time of writing this article (1119 EST), Ethereum is up over 2.57%, experiencing one of the most bullish intraday moves it has seen in over 30 days. From the swing high of 364.49 on June 26th, 2019 to the most recent swing low of 171 on August 15th, 2019, we have seen Ethereum drop -53.09% over the past 57 trading days. The drop that Ethereum has experienced is mostly in line with the broader cryptocurrency market, Bitcoin continues to eat up more and more of the market cap and even Ethereum can not keep pace with the 70% market cap leader. But today’s intraday price action may hint at a change. The hourly Ichimoku chart above shows all criteria for an aggressive buy entry have been fulfilled: price above the Tenkan-Sen and Kijun-Sen and the Chikou Span above the candlesticks and in open space. This is a very aggressive intraday strategy, but one that can signal a broader change on longer time frames. Not shown is the shared resistance zone between 204.78 and 192.08. There is a confluence zone of strong resistance in that price range. The daily Kijun-Sen, 4-hour Kijun-Sen, 4-hour Senkou Span B and the 1-hour Senkou Span B all reside within that price range. If Ethereum can break above that zone, then a clear run towards 250 is likely.
Altcoins responding bullishly
A significant portion of the altcoin market is following Ethereum’s gains and is in the green for the day. These gains are not only against the USD, but Bitcoin (BTC) as well. Cardano (ADA) is up over 5% against Bitcoin and nearly the same amount against the US Dollar. Basic Attention Token (BAT) is also showing strong gains against the US Dollar and Bitcoin with moves of +7% against both. Some other notable altcoins have experience some meteoric rises throughout the current session, notably ICON (ICX) which is up over 30% against both Bitcoin and the US Dollar. While these current levels are bullish and hopeful, follow through by investors and traders needs to occur. There needs to be a continued and consistent pressure on the speculative side of the crypto market (basically every top 40 altcoin) to have healthy volume and price increases. US Dollar volume continues to pour into Bitcoin while altcoins continue to see a bleed both in Bitcoin and US Dollar values. The positive her is that dollars are staying in Bitcoin – so that is a positive for the overall cryptocurrency market. The current bear market in altcoins vs Bitcoins is now the longest intra-crypto bear market in cryptocurrency history. As long as Bitcoin continues to gain more and more market share, there will continue to be a bleeding of altcoin value. There are certainly some projects and cryptocurrencies that show they have value and use, but we have yet to see investors support those entities.