Can $ETH Reversal From $2850 Spark Altcoin Resurgence?

Cryptocurrency Price Prediction: The Bitcoin price the dazzling trend around the $65,000 and $60,000 levels for over a week has increased uncertainty among market participants. While the brief bullish days during this consolidation have triggered notable inflows into several altcoins, buyers are still struggling to drive sustainable growth.

Wu Blockchain pointed out that this week the United States will release consumer price index (CPI) data for April, which is expected to show an increase of 3.4% year-on-year, slightly down from the increase 3.5% in March. The expected increase is partly due to rising gasoline prices in April, which could keep inflation rates high. However, there is some relief on other fronts, such as the wholesale used car market, where auction prices reportedly fell 2.3% in April.

Higher inflation can lead to tighter monetary policies which can decrease risk appetite, causing cryptocurrency markets to decline.

1) Ethereum (ETH)

Ethereum is a decentralized blockchain platform known for its versatility and the introduction of smart contracts: self-executing contracts with terms written directly in code.

Ethereum (ETH)| Tradingview

The Ether coin has been witnessing a sideways trend for over a month with its price resonating within two horizontal levels of $3300 and $2875. With the renewed buying interest in the market which supported the BTC price rebounding from $60000, the ETH price it also recovered from the $2875 support and rose to the $2960 level.

According to data from Coinmarketcap, Ethereum’s market capitalization rose to $3,505.6 million, while the 24-hour trading volume amounted to $10.4 billion.

Therefore, a breakout above the upper resistance of the $3,300 range led to an escape from the current consolidation. The potential breakout will release bullish momentum and allow buyers to challenge the $4,090 high again.

Read also: Ethereum (ETH) Price Drops Another 1.5% Due to Whale’s Massive Deposit on Coinbase

2) Batteries (STX)

Stacks (STX) is a unique blockchain solution that aims to bring smart contracts and decentralized applications (dApps) to Bitcoin. Unlike traditional blockchains that operate independently, Stacks leverages the security and stability of Bitcoin through its innovative consensus mechanism, Proof of Transfer (PoX), which anchors the Stacks blockchain to Bitcoin.

Stack (STX)| Tradingview

The current correction trend of Stackable price can be followed using two converging trend lines of a descending wedge pattern. This pattern is known to lead to a temporary pullback for buyers to regain strength.

Today, STX price rose to $3 to trade at $2.05 and shows a market capitalization of $29.68 billion.

For potential buyers, a break above the upper limit of the pattern is necessary to signal the resumption of the uptrend. A successful breakout would push STX price to $3.13, followed by $3.84.

However, as long as the wedge pattern is not intact, the Stacks coin will prolong its current correction trend.

3) Dogecoin (DOGE)

Dogemoneta (DOGE) began as a meme-inspired cryptocurrency in 2013, but has since gained a huge following and real-world use. It is known for its low transaction fees and fast transaction times, making it a popular choice for online microtransactions and tipping.

Dogecoin (DOGE)| Tradingview

For the past seven weeks, a descending trendline has been driving the correction trend DOGE price. Under the influence of this dynamic resistance, the value of the meme coin collapsed from $0.228 to the current trading price of $0.143, recording a loss of 38%

At the time of this writing, Dogecoin had a market capitalization of $20.7, maintaining its position as the ninth largest cryptocurrency. For buyers to regain a firm grip on this asset, they need to breach the overall trend line which could support a rally to $0.228.

Read also: Dogecoin and Shiba Inu await breakout for a rally above 100%.

Key takeaway

On Monday, Bitcoin price rose 2% to $62,540, prompting a modest surge in the altcoin market. However, this increase is not substantial enough to suggest a significant change in market dynamics. More definitive confirmation of the recovery would require Bitcoin to break above the $65,000 mark, signaling stronger potential for continued bullish momentum.

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