– 82% in one year: is Ethereum’s demise finally over?

Can cryptocurrencies become attractive again in 2023?– Another bad news on the cryptocurrency side. Silvergate, a bank specializing in digital assets, has laid off 40% of its employees. Many cryptocurrency-related businesses continue to scale down, and this shows that the situation is still delicate. After falling 82% from its November 2021 peak, ether can he recover?

Ethereum is showing a drawdown consistent with recent cycles

Ethereum (ETH) is there freefall since late 2021, like most cryptocurrencies. Within a year, Ethereum fell by 82% since its all-time high $4,860. That may sound huge (and it is), but it’s not unique to crypto’s second capitalization:

Drawdown on Ethereum since 2016 Source: Glassnode

the retreat (percent drop from high) on Ethereum is within standards of what the asset has seen since 2016. Admittedly, this may come as a shock, but Ethereum has more than fallen 90% during the last cycle. If you believe in Vitalik Buterin’s project, the worst may be behind you. However, this does not indicate a market bottom. It will be necessary to study technical analysis to identify them key levels for dynamic change.

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Ethereum could reignite bullish momentum

It is possible that Ethereum is close to the market bottom, or even that it has already seen its market bottom. To do this, buyers must regain control of the price:

Ethereum has an opportunity to regain bullish momentum.
Ethereum price against the dollar (3D)

There are two key levels for Ethereum, which will determine the direction for the next few weeks or months. To find a… bullish momentum In the short term it will be necessary to break the level $1,350. This level will not be easy to break because the institutional bias (EMA 9/EMA 18) could decline the lesson. Also the bearish trendline initiated in August could block the course. It will be necessary to go through that weekly resistance at $1,900 to find a real one bullish momentum weekly. A fence at the top $2,030 would be very positive for the process.

Attention, the sellers have the opportunity to drive the point home. To do this, it is necessary to close below the last low at $1,075. When that low is pushed, the bearish momentum continues. Whatever happens, the $1000 weekly support must hold to avoid a new bearish wave.

The momentum is bearish since the rupture of bearish trend line. The RSI is trying to turn up again, but the bearish trend line might do it again decline the lesson. The situation for the Ether Coin is still delicate, but buyers have the opportunity to regain control at the beginning of 2023.

Ethereum is trying to rally against Bitcoin

The price of the ETH/BTC pair is a tidy since the beginning of May 2021. Given the market situation, Ethereum is holding up and even allowing itself to rise against Bitcoin:

Ethereum is gaining strength against Bitcoin.
Price of Ethereum vs Bitcoin (3D)

Ethereum is gaining strength against Bitcoin. The course breaks the bearish trend line Initiated September 2022, it stays that way confirm the outbreak. In fact, the breakout needs to be confirmed by the price action above 0.076 BTC. Also, buyers absolutely need to step out of the range by taking the price beyond that Resistance at 0.08 BTC. This resistance is powerful, however The more it is affected, the more it tends to weaken.

The momentum sends a bullish signal. The bearish trendline is giving way, rejecting the price since August 2022. When such a strong bearish trendline gives way, the price can experience strong buying power. For this it is also necessary to exceed the level at 62 of the RSI.

Impending recovery in bitcoin dominance?

As it appears Capital flows into Bitcoin Early 2023. The graph shows a bullish momentum within a tidy In between 40% and 47% of dominance:

Bitcoin dominance is bullish on a three-day time frame.
Bitcoin Dominance Chart (3D)

The course is at the level of institutional bias. These moving averages could allow during bounce, and to confirm the direction of capital over the past few months. If the trend is confirmed and the price continues to move higher 42%Altcoins may struggle (green arrow scenario).

The scenario materialized by the red arrow is less likely, but it is important to imagine the different possible scenarios in order to react accordingly. If the institutional bias gives way and does not allow a rebound, the price will go towards the again weekly support. However, this support allowed the price to rally five times support is weakening. A return to weekly support levels would be very positive for altcoins.

The RSI is moving above the bullish trendline. Everything seems to point to that at the moment bullish continuation of bitcoin dominance. As it appears Bitcoin is this year’s attractive asset for cryptocurrencies.

Altcoin cap below $495 billion still weak

Altcoins are on the brink. If the medium too $435 billion gives way, altcoins could fall by 25% :

Altcoin capitalization is fragile.
Altcoin Cap Chart (3D)

Upper and lower case remain the same $435 billion for several weeks. Currently the course is faced with the institutional bias, and the latter could refuse the course. In the event of a rejection and a breakout of support, the price could fall towards next support at $330 billion (Red Arrow Scenario).

Buyers have an opportunity to avoid this bearish scenario. This will require going beyond and breaking through institutional biases weekly resistance at $480 billion. This level is very important to rally, as long as the price is below it altcoins will stay fragile. The RSI is too fragileit will take a low and rising high trajectory to find color on this chart.

ether has an opportunity to regain bullish momentum in the short and medium term. If Ethereum closes above $1,350, altcoins could benefit. Indeed, let’s not forget that the ether coin is the leader of the altcoins. Against bitcoin, Ethereum is trying to find its way back up. Buyers need to confirm this by breaking above weekly resistance and that will not be easy. Resistance has been holding for over a year and a breakout of this level would be a significant bullish signal for altcoins. Altcoins capitalization needs to surge above $495 billion to avoid a new worst-case scenario on the altcoins side. Will 2023 be the Year of Rise Return for Cryptocurrencies?

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