Ethereum rallies signal prosperity for nearly all alternative tokens. However, what about the signals failing to sustain and welcome downsides?
That remains the problem with the leading alt, ETH, at the moment. Though Ether formed a 2-month peak last week, it seems primed for potential downsides.
ETH to $2K
Some 48 hours ago saw Ether at pre-June crash value areas as the altcoin successfully touched the $2,000 mark. Markets expected ETH to stretch its upward tendencies.
However, the dominant alt witnessed a correction within no time, and Ethereum plunged to change hands at $1,892. The 91.2% upsurge that brought ETH to these areas shows slight threats as the token wavers as the border of a crucial support floor.
The 23.6% FIB level is a crucial area for Ethereum’s upside. Plotted from its $4,811 ATH, a revival beyond the red line will offer the support Ethereum requires for sustained recovery.
Meanwhile, the resurgence from oversold conditions in June as the slump has remained overwhelming. Therefore, Ethereum faces a potential cooldown period because of overbought tendencies.
The RSI (Relative Strength Index) proves the narrative as the indicators tested 80. Therefore, a cooldown would mean the coin taking more duration before entering the positive territories for investor profits.
Meanwhile, the NUPL (Net Unrealized Profit/Loss) showed Ethereum revived from capitulation status to a hope-fear state. However, the recovery should see optimism to find subsistence.
That would also match with price levels beyond $2K, from which Ethereum will target to reclaim the 38.2% Fibonacci line. That usually indicated a rally for crypto.
The potential rally would also increase profits that investors saw within the previous two weeks, which triggered an upswing of the SOPR (Spent Output Profit Ratio) as it touched a three-month peak this month.
While publishing this blog, the crypto market attempts to keep gains recorded over the past few sessions. Most digital tokens recorded brief price actions within the past 24 hours.
Nevertheless, the market stays mixed. The global cryptocurrency market cap hovered at $1.15 trillion during this publication, gaining 0.41% within the past 24 hours. Let us check what coming market events will bring. Stay tuned.