Ether Recovers After Being Dumped for BTC; Too Soon For Bottom Though - Price Analysis
Since we last covered Ethereum (ETH), the leading smart contract coins market picture has not changed all that much. Ether is potentially carving out a bottom on its ETH/BTC pairing, after capitulating to lows not seen in years in mid-July.
Looking on the weekly, we can see that volume is generally dropping as ETH/BTC chews through this vintage support zone - derived from more than two-year-old price history.
Having fallen out of this area once already, it would be dramatic for Ether to lose this zone. In terms of the BTC pairing, very little extensive price history remains below this mark.
Although ETH is still severely dumped during Bitcoins pumps, as happened during the apex of its most recent one on August 9, it seems to be holding in its present range within the 2017 support.
We can see this dynamic on the daily chart. ETH/BTC dropped out of the critical range - blue band - at the height of Bitcoins, it turns out, false breakout from a pattern. RSI dove deep into oversold territory before bouncing back, and we can probably blame Bitcoin for this. The histogram, however, is showing strength and bullish divergence from price lately.
On the much shorter 4-hour chart, we see what may be the end of, or the middle of, the mini-rally from recent lows. There could be some fuel left in this rally, too: volume is growing on each push up; and RSI peaks have grown with price.
The histogram is starting to flatten out, and may need a breather before another push up. The first major resistance zone in the local structure has been found, and the MAs have been left behind. But after all the downside, a decent leg of upside here would not be surprising.
Ether has been rekt on the BTC pairing for quite a while now. It is still too soon to say a bottom has been found in the long term. But a decently optimistic picture in the short term could get us there, if it continues. For now, there seem to be plenty of short term trades popping up.