Recently, several altcoins have been showing strength. Some good examples are Theta Token (THETA), Zilliqa (ZIL), and Elrond (ERD). However, large caps are lagging far behind and the only large cap currency that has performed well has been Cardano (ADA).
As the smaller-cap alternative currencies begin to take off, some investors may wonder exactly what is needed for a significant increase in large-caps. Does the market need confirmation of Bitcoin (BTC), the highest rated digital asset in CoinMarketCap, or is it the main signal of Altcoin Ether (ETH)?
Crypto market daily performanc
Ether has a crucial support level at USD 220
The ETH/USD pair recovered from $195 to $250 in the last month, but also corrected along with Bitcoin in the days before. As the Bitcoin price dropped this week, Ether withstood a test and the green area between USD 271 – USD 222 is the area that needed to be kept as support.
Volatility in the Bitcoin price is expected when the difficulty of mining is adjusted by 10%
ETH/USDT 1-day chart
As shown in the chart above, the rebound was successful and confirmed that the USD 217 – USD 222 level is a support level, while it was resistance throughout May.
The chart also shows apparent resistance at the USD 250 level, where a range appears. This range has support between USD 217 – USD 222 and resistance at USD 250.
The ETH/USD has been in a rising trend since the March 12 collapse, after which it is more likely to see further gains above USD 250.
The following primary resistances can be found at USD 290 and USD 330 – USD 340. If the price falls below USD 217, one can expect a potential support test of the 100 and 200 day moving average at USD 168 – USD 176.
The larger picture shows a clear accumulation period for the ETH/USD pair; and since July 2018, the price of Ethereum has been trading between USD 100 and USD 300, a two-year range, ready to explode.
The longer such a range is maintained, the larger the breakout. In addition, such a long accumulation period also guarantees an excellent Crypto Wealth risk/reward opportunity.
What is crucial in this chart? The 100 and 200 day MA is below the current price, which guarantees support and ensures further upward momentum.
Another argument for more profit comes from the increase in volume within this accumulation. As is often said, volume precedes price, through which accumulation is often seen by an increase in volume. Ether is currently showing this signal.