Ethereum [ETH] Struggles to Keep Up with the Market as the Altcoin Loses Ground to Bitcoin [BTC]

Ethereum [ETH] has performed poorly since April, especially compared to Bitcoin [BTC]. As the leader of the altcoin market, some participants expect ETH

Bitcoin [BTC] has led the market recovery from the lows of 2023. As the flagship digital asset rallied past key resistance levels, traders began to anticipate the next altcoin season. However, BTC’s performance might have hinted at a different outcome.

Bitcoin’s relative strength index (RSI) on the four-hour chart showed that BTC was overbought for the majority of the past week. This suggested that a correction was likely.

Are your holdings secure? Get a Ledger hardware wallet now!

Further, BTC’s Awesome Oscillator (AO) crossed below the zero line on 22 December. This was a bearish signal, especially considering the overbought nature of the market.

Finally, BTC’s price action formed a lower high on 22 December, despite making a new high on 21 December. This signaled weakness in the bulls and hinted at a possible bearish reversal.

Relative strength vs market depth analysisAfter observing the bearish signals from BTC’s technical indicators, an analysis of the relative strength versus market depth was undertaken. This analysis aimed to identify any potential resistance or support levels in the market.

The analysis revealed a large sell order resting at $23,000. This order had a depth of around 200 BTC. On the other side of the order book, there was a large buy order at $22,800, with a depth of around 100 BTC.

These orders suggested that there was strong support at $22,800 and resistance at $23,000. If BTC were to rally past $23,000, it could face difficulty in continuing its uptrend.

ETH price action showed bullish strength, but…As Bitcoin rallied, so did Ethereum. At the time of writing, ETH traded at $1720. The altcoin encountered resistance at $1730 and support at $1680. The bears attempted to drive the price lower on 22 December.

However, ETH’s bullish structure remained intact as it formed a series of higher lows on the four-hour chart. This suggested that the bulls were buying the dips and defending key support levels.

Relative Strength Index (RSI) on the four-hour chart showed that ETH was also overbought. This was indicated by the RSI being above 70 for the majority of the past week.

Further, the Awesome Oscillator (AO) crossed above the zero line on 22 December. This was a bullish signal, especially considering the overbought nature of the market.

Finally, ETH’s price action formed a higher high on 22 December. This signaled strength in the bulls and hinted at a possible bullish continuation.

The above is the detailed content of Ethereum [ETH] Struggles to Keep Up with the Market as the Altcoin Loses Ground to Bitcoin [BTC]. For more information, please follow other related articles on the PHP Chinese website!