For the past two weeks, Ethereum has been mirroring Bitcoin with both coins consolidating on low volume and equal pressure from buyers and sellers in both. However, the 6% price drop which has occurred in Bitcoin which brought it from around $6660 to $6250 has had a worse impact on Ethereum.
Ethereum, the market-leading altcoin, has dropped from around $224 to just below $200. Ethereum is underperforming Bitcoin in this drop as it has done throughout the year with Bitcoin proving to be a better store of value. Bitcoin currently represents around 54% of the total cryptocurrency market capitalization, and its moves have had a big impact on the corresponding moves of altcoins.
The drop in Ethereum has been on significant volume, more than double the 20-period average daily volume. The prospects for Ethereum from here seem to rely on the performance of Bitcoin.
The initial drop brought the Ethereum price to a low of $192. It has since started to retrace back up but may be experiencing some resistance at the $200 mark. The hourly RSI and MACD have started to increase showing the short-term momentum shifting to buyers. The main drop may be over, but for longer-term direction, traders should closely monitor the price action of Bitcoin.
- Ethereum underperforms Bitcoin in the most recent price drop and returns to sub-$200 levels.
- Ethereum movements are dependent on market leader Bitcoin which represents around 54% of the total market cap.
- Short-term momentum is shifting towards buyers, but traders should monitor Bitcoin price action for longer-term direction.
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