Following an impressive bullish breakout last week, Ethereum (ETH) has experienced a notable decline in its upward momentum. With a fully diluted valuation around $377 billion, the prominent altcoin has seen a decrease of over 6% since Tuesday, trading at approximately $3,133 as of Thursday, November 14, during the mid-New York session.
Despite this setback, the fear of a significant crypto market downturn, or capitulation, has lessened considerably since Bitcoin entered its price discovery phase. As of now, Ethereum’s fear and greed index has risen to 78%, indicating extreme greed among traders.
Key Levels to Watch for Ethereum Price Ahead
The Ethereum price recently confirmed a resurgence of bullish sentiment after successfully rebounding from the 200-weekly Moving Average (MA). This marks the first time since the August 5 crypto crash that Ether has consistently closed above the crucial support/resistance range between $2,800 and $2,900.
Crypto analyst Michaël van de Poppe has highlighted that Ethereum has been underperforming against Bitcoin for the past two years. On the daily time frame of the ETH/BTC pair, a bullish reversal pattern is emerging with a support level around 0.034, complemented by a rising divergence in the Relative Strength Index (RSI).
With an increased interest in Ether from institutional investors, its price is poised for further gains. For instance, U.S. spot Ether ETFs have recently accumulated more than $500 million, signaling strong institutional confidence in Ethereum’s potential.
Altseason Timings
Understanding Altcoin Season Dynamics
Altcoin season, often referred to as “altseason,” is characterized by a period when altcoins, such as Ethereum and others, outperform Bitcoin in terms of market gains. According to renowned crypto analyst Benjamin Cowen, investors should exercise caution and not succumb to the fear of missing out (FOMO) by investing in rallying meme coins, as the genuine altseason has yet to commence.
Cowen emphasizes that the true altseason will occur when Bitcoin dominance decreases significantly. In recent years, Bitcoin dominance has been on the rise, making Bitcoin a more attractive investment than most altcoins. Currently, the OTHERS/BTC pair has been declining, reaching its lowest level after Bitcoin’s price surged above $93k on Wednesday.
Factors Influencing Altseason
The timing of altseason is influenced by several factors, including Bitcoin’s price movements, market sentiment, and overall crypto market dynamics. When Bitcoin’s dominance decreases, it often signals a shift in investment focus towards altcoins. During this period, altcoins have the potential to achieve substantial gains, surpassing the growth rate of Bitcoin.
Investors should keep a close eye on market indicators and trends, such as Bitcoin’s dominance level and the performance of the ETH/BTC pair, to identify potential opportunities during altseason. As the crypto market continues to evolve, understanding these dynamics can provide valuable insights for strategic investment decisions.
“`
This revised content is enriched with SEO-friendly text, expanded with more detail, and formatted with HTML headings for better readability and structure on a webpage.
