The role of the altcoin leader in setting up a market trajectory and acting as a point of reference for other alts is undeniable. It’s no wonder that there is an abundance of Ethereum-killers in the market.
Crypto-analyst and trader Michaël van de Poppe, in his recent video, highlighted Ethereum’s price action as an important indicator for the alt market. Amid its recent upgrades, excitement in the Ethereum community and the general altcoin market remains high.
Even though Ethereum has made lower lows and lower highs lately, on the development front, it seemed to be performing well. It was in the news recently after the much-anticipated London upgrade went live on the Goerli testnet.
The altcoin was trading at $2,173.98 at press time, a figure that was just under 50% lower than its ATH. About ETH’s southbound price action, Poppe said,
“We are making lower highs, we are making lower lows, we are flipping levels that used to be support into resistance at this stage. We can see that a critical breaker on the USD pair is failing to break and therefore it’s another bearish support resistance flip.”
Highlighting the critical support and resistance levels for Ethereum, the analyst also pointed out that if ETH rejects the critical support at the $1700-mark, makes higher lows, flips resistance into support, and accelerates, then the $3k target might be achieved. In fact, he also argued that the critical breakers for Ethereum couldn’t break over the last few days.
Underlining the critical levels to watch out for, Poppe added that one needs to keep an eye on the $2k-support for ETH since it needs to be maintained in order for it to go up.
“2k is the level you want to see sustain, as then you can have a small compressive period and a potential bullflex structure as well and then continuation can happen on ETH.”
#Ethereum rejects at a crucial level and is currently in the first support zone.
If this zone fails to hold, I'm assuming we'll see a retest at the $1,750 level before reversing. pic.twitter.com/d1a5SJmlff
— Michaël van de Poppe (@CryptoMichNL) July 2, 2021
Comparing ETH against Bitcoin, the analyst went on to claim that if it sustains momentum, and if it can flip the range around 0.06 Bitcoin, it would be flipping the critical break for further upwards momentum. So, if Etherum shows strength and holds its position there, the likelihood of it continuing towards this entire region around 0.075 Bitcoin would be very high.
Finally, on the question of the ETH/BTC chart, Poppe mentioned that after Ethereum 2.0 is launched, if the 0.075 Bitcoin level is breached, then the chances of altcoins rallying also increases.
Interestingly, Ethereum’s 90-day ROI and one-year ROI were 1.79% and 802.51%, respectively. On the contrary, the asset’s price performance over the past 90 days v. BTC was +75.50% and that over one year was +147.94%.