Unlike with eth/usd, we have yet to break the all time high so we should expect to see strong resistance if and when eth approaches this level at around 0.15 with a high probability of a major pullback/dump. Before we reach that we also have the Jan 2018 peak around 0.12 to contend with, a significant level from a significant time in crypto market history. Be under no illusion, just because the majority attention is on eth/usd does not lessen the significance of these levels, OG whales, market movers and anyone looking for an edge are all watching them.
As we currently approach the recent May 2021 high, we also find ourselves having to contend with the top of May 2018’s dead cat bounce, a region which has provided us with a clear warning already. Just beyond that we have what is possibly the most significant trendline in any of Ethereum’s price charts currently. Dating back to Dec 2016, this support-turned-resistance line has only ever been broken once, when it flipped during the 2018 bear market ultimately leading to eth’s prolonged accumulation phase. This line was tested briefly before the recent May sell-off and provided us with one of the best predictors of price action for the entire crypto market this summer, even moreso when considering its proximity to the aforementioned dead cat bounce region. Although perhaps becoming less relevant, we should also note the other trendline lower down and almost parallel. This resistance-turned-support line may still be important should eth struggle to break above the current range, a strong possibility if btc’s current recovery can take it back into new highs. In such a scenario these two lines could form a temporary channel before the inevitable break upwards.
When that breakout does occur however, it’s pretty much an open space before 0.12 so we should expect eth to clear this with relative ease. Given its history, this will likely also act as the catalyst for the next wave of big moves across altcoins. Getting past 0.12 may prove more of a challenge and, should eth successfully clear it we would be wise to view 0.15 with extreme caution. At that level selling pressure may quite possibly be sufficient enough to trigger a prolonged reversal, especially if coinciding with a sell-the-news type event like eth 2.0 launch or another period of mass fud.
New money may be flowing into crypto via stablecoins but eth/usd is in unchartered territory, any analysis of that chart is extremely uncertain and reliant on a lot of guesswork. In contrast, this chart provides us with several historically significant price levels and continues to play an important role within the crypto market.