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Ethereum Daily Chart – Source: Tradingview.com

Ethereum has been outperforming other top cryptocurrencies which has resulted in it reclaiming the title as the largest altcoin by market cap.

Ethereum overtook XRP to become the largest altcoin after outperforming during the surge which took place at the end of last week.

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Ethereum is also outperforming on today’s drop.

Most top cryptocurrencies have erased yesterdays gains with today’s drop, but Ethereum has not done this yet.

Ethereum 4-Hour Chart – Source: Tradingview.com

Ethereum has been testing the 50% retracement level from Decembers low to January high.

The price rose above the level in recent trading but quickly dropped back below.

A bearish divergence between price and RSI preceded the drop back below.

A bearish divergence is where the price goes on to form higher highs despite RSI forming lower highs.

It shows price continuing to increase even though buying pressure is falling.

The key level to monitor below the price for support is $114 which has acted as support in the past.

However, consecutive tests of the 50% retracement level increase the chance that price will break above.

Each test results in fewer sellers to hold the level.

Key Takeaways:

  • Ethereum outperforms other top cryptocurrencies and reclaims the position of the largest altcoin by market cap.
  • Price has been testing the 50% retracement level to the upside with each test increasing the chances that price will break above.
  • The key support level to monitor below price is $114.

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DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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