Ethereum Jan 19 - Can ETH Carry Altcoins While BTC Drops?

Ethereum Jan 19 – Can ETH Carry Altcoins While BTC Drops?

Fragile Bitcoin Since ETF Launch – BTC has fallen 17% since spot bitcoin ETFs were validated and launched. Yesterday, the price fell below $42,000 and this led to the liquidation of $200 million. As for ETH, a move down followed and the price is back at $2,400. Can the second cryptocurrency capitalization start to rise again without Bitcoin? Here is the ETH newsletter!

This Ethereum price analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.

Ethereum price drops by 3% in 24 hours

Despite the recent the strength that ETH has shownand especially during the launch of spot bitcoin ETFs, the priceETH follows Bitcoin on its fall. In fact, the price of Ethereum fall out of 3% in 24 hoursand more than 5% in one week :

During one month, the course maintains a increase of approx. 11%. In the face of BTC, Ethereum remains quite strong. The ETH/BTC pair is rising1% in 24 hours and more than 5% in one week.

Correlation between Bitcoin and Ethereum is falling, reminiscent of 2021 and 2017

At the moment, yes BTC that dictates its law. With the exception of a few rare altcoins, the assets tend to be small caps track the moves of the cryptocurrency king. When ETH manages to break away from BTC, altcoins are able to express themselves (beat BTC). Since the end of the bull market in 2021, Bitcoin and Ethereum are highly correlated :

The correlation between the two largest cryptocurrency capitalizations seems gradual muffle. In fact it has dropped below 0.7 for the first time since 2021. These include a sign of strength for ETH which commemorates the years 2021 and 2017. If the correlation continues to decline, the prince of cryptocurrencies could surpass BTC. Since ETH is the leader among altcoins, they could also benefit from this decorrelation.

Ethereum price is back at the $2,400 support level

ETH blocked on resistance at $2,700and sellers managed to bring the price back to level support of $2,400. Despite this decline, the price continues to show a dynamic with increasing lows and highs :

AND bounce could bring the price back to level resistance at $2,700. On the other hand, if sellers manage to drive the price lower $2,400return to $2,300 is possible. A scenario to avoid as the price would return to in the $2,400 to $2,100 range. Therefore, the price could down to $2,100. The RSI develops below a bearish trend lineit will have to be broken to potentially find any bullish volatility. It will also be necessaryfind bullish momentum on the RSI.

The correlation between Bitcoin and Ethereum is weakening. This could allow the cryptocurrency prince to continue his upward momentum. For this to happen, buyers will need to be able to defend the $2,400 support level. Next, buyers will need to break out of the resistance at $2,700. If ETH continues its momentum, altcoins could benefit.

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