Whether the Altcoin rally would see the light of day or not is now in the hands of Ethereum. The anxiety as to the fate of Altcoin is well portrayed in a chart of ETH/USD that many have described as being crystal clear. Currently, the price rests a little bit above the standard 21 Day EMA. Going below this even a bit is to fall to a Fibonacci retracement level of 38.2%.
Moving a bit upward would see the Altcoin rally to a retracement level of 61.8%. Now that Ethereum has been consistent with the range in the past couple of days, it currently enjoys supports at the level of 21 Day EMA and 38.2% Fibonacci level.
Notwithstanding this, Ethereum could be highly resisted at the 61.8% Fibonacci retracement level. Furthermore, should Ethereum declines to the 38.2% Fibonacci retracement level, it has the option of trend line support.
Ethereum Could Go Down Again
Current analysis of wave trend suggests that Ethereum (ETH) can drop again like it has been dropping until now. The only difference between now and when ETH was retrogressing is that its price has now gone above the standard 21 Day EMA. Before now, Ethereum had always gone below this benchmark. So, being above the 21 Day, EMA may mean that it is getting to the point of positive resurgence.
Truth be told, while it is anticipated that Ethereum gets past its problem, its process is by no means easy. To soar above the 61.8% Fibonacci retracement level would be Ethereum first-time assignment after its restructuring. In those days when Ethereum was going down, it has never been able to go past the 61.8% resistance.
As it now, Ethereum either goes past the 61.8% resistance level or fall below the 38.2% Fib level. If it falls above the 61.8% Fib level, it will make the altcoin rally; but if it falls below the 38.2% Fib level, it would have succeeded in breaking the altcoin rally. Whichever ways, Ethereum only has a week to decide.
There are no favorable technical indications to submit that ETH would come back strongly to what it used to be, but it has the capacity to support itself above the 61.8% Fib level. Already, a lot of patching has happened to it lately and it would be quite unthinkable to go down the drain again. Nevertheless, investors would have to prepare for the worst.
The ETH/BTC chart above makes a serious point which many people decide to ignore most times. As many as are open to reality, getting the big picture is not difficult. However, anyone heading on a short-term FUD or FOMO would be responsible for their decision. Most cryptos swing between falling and rising wedge and only a big picture can guide correctly.