Bullish sentiment expectations for ETH/BTC: Leads the market and sets an upward course
- The cross between market leaders puts the market in "Risk On" mode.
- USD strength undermines gains on crosses against the greenback.
ETH/BTC 240 Minute Chart
At the end of Friday's U.S. trading session, the ETH/BTC was above the critical resistance level of 0.0318. This bullish breakout was the signal the crypto market needed to move higher. Moreover, it did so forcefully.
The move was led by Litecoin, which rose more than 35% against the US Dollar, followed by Ethereum, EOS, and Bitcoin. XRP, on the other hand, barely recovered ground.
The ETH/BTC pair is currently trading at the price level of 0.033698, surpassing the price congestion resistance level of 0.0330 and heading towards the meeting of the trend line that was lost in mid-January at the 0.0341 level.
The main medium-term objective for the ETH/BTC pair is at 0.0522, after passing through resistance levels at 0.035 (resistance due to price congestion, then 0.038 (resistance due to price congestion) and third at 0.0415 (relative highs and resistance by price congestion).
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Above the recent highs, two long term resistance lines will impede the passage of the ETH/BTC. The first is at 0.0428 (price congestion resistance) and the second at 0.048 (price congestion resistance).
Below the current price, the life support level is 0.03180 (price congestion support and trendline). Losing this support level would not only undo the gains made in the last few hours. It would also show a weakness in the price structure and the market could drop sharply.
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The MACD on the 240-minute chart shows a profile that points to a bearish cross but can quickly become strongly bullish if the price continues to rise. Contrary to what we see in the crosses against the US Dollar, in the ETH/BTC pair the rally did not lead to extreme MACD levels, so there is a way ahead.
The DMI on the 240-minute chart is also favorable for the continuation of the bullish movement. Bulls remain above the ADX, thus keeping the bullish potential intact. On the other hand, the bears continue to decrease in intensity and show that they have little confidence in their possibilities.
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Author
Tomas Salles
FXStreet
Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland.
