Altcoins
Bearish flags are waving on Ethereum and this popular altcoin as they may be poised for a 10% pullback
The ongoing price change with Bitcoin does not have much of an impact on major altcoins such as Ethereum and Avalanche, as prices continue to trade within a range. THE BTC price rebounded by more than 5%, which should have triggered a healthy 10% recovery in the top 15 altcoins. However, a slight increase in the price of Ethereum has raised concerns, while even the best performing asset Avalanche struggles to hold the pace of the bullish series.
Under such trading conditions, the possibility of a continued downtrend remains quite high, as the bulls appear to be waiting to accumulate in the lower ranges.
Ethereum has been trading inside a descending parallel channel since it faced rejection at yearly highs, much like that of Bitcoin. However, it generally sets an average outlook as it trades above $3,000 with an increase of more than 2%. The STF shows strong resistance to the downtrend and therefore the trend is more likely to remain down for a long time.
The RSI remains stuck within the lower range while levels within the DMI run parallel to each other, suggesting the continuation of a consolidation phase. This also indicates the absence of the required bullish activity, which could result in future bearish action. THE ETH price it has already tested the lower support of the channel a couple of times, which attracted the bulls. Therefore, a deep drop towards the lower support could only trigger a healthy recovery above the mid-range.
On the other hand, Avalanche (AVAX), which has shown significant strength as of late, is accumulating along the lower support. In the short term, the trade appears to be in favor of the bears and thus another pullback towards the support zone could be imminent.
Despite trading in an ascending range, the price remains stuck at the lower support of the channel. The Stochastic RSI, known for its sharp changes with extreme movements, varies with a lower trend line as support. Furthermore, the MACD remains bullish but within the bearish range, indicating that the bulls are not actively trading. Consequently, this trading setup suggests that a bearish collapse is imminent, with the AVAX Price test local support near $30, which could attract bulls.
Collectively, both cryptocurrencies are trying their best to overcome the bearish influence, but eventually, the price of Ethereum (ETH) and the price of Avalanche (AVAX) may face a bearish pullback, attracting new liquidity to the platform.
Also check: Why Ethereum (ETH) Price Collapsed After Dencun Update: Has the Token Become Inflationary?