In the last couple of weeks, Bitcoin has been all the rage with peaks reaching up to almost dizzying heights, unlike Ethereum. Recently, Ethereum has been trading in a descending price channel, which demonstrates poor growth over the past weeks in comparison with Bitcoin that recently formed an impressive upward movement.
While the rest of the cryptocurrency market, including Bitcoin, is relatively optimistic, ETH just cannot muster enough upward movement to start a new upswing. ETH is still confined by a descending channel as indicated by the daily charts with no signs showing that it will revamp and start to rise.
However, the descending channel’s multi-day trend line the lowest line of the downtrend has remained extremely bearish, quickly thwarting all ETH efforts at rebounding above this limit in the past few days.
Ethereum Needs to Break $2,650 for a Bullish Shift
For the Ethereum to shift its momentum to a bullish trend, it has to break the $2,650. If this level of support is breached, we move up to the next notable level of $2,750, a level which has contained upside breaks in the past. The negative is also stronger support levels at $2,250 and $2,350 if the selling William continues as observed in other digital currencies.
A primary reason behind Ethereum’s poor performance is low volumes of traffic as measured by trading frequency. Relatively, across the last few sessions, the volume has progressively receded, just in case the potential buyers are waiting for a clear breakout or they have turned over-cautious. Currently, Ethereum does not appear to have the power to compound enough volume needed to take it out of the downward channel that it is currently in.
Such stagnation in Ethereum price has been especially seen recently after a series of big selloffs from major holders that started in late summer. For now, ETH still sits in an uncomfortable spot, seemingly out of the loop in Bitcoin’s upward climb.
This scenario suggests that if market dynamics are subject to change as often as they seem to be, it will be interesting to see whether Ethereum can reach out of its range. Actual growth in volume may offer the required boost for ETH in the offered direction but, for the time being, Ethereum appears unlikely to behave out of sync with the latest Bitcoin buoyancy.
