Ethereum’s price recently rallied from approximately $1,580 on Apr. 21 to over $1,800 by Apr. 23. This 5.6% daily gain contributed to a weekly surge of 12.4%, marking renewed strength for the asset.
The move mirrors broader crypto market trends, including a notable breakdown in USDT dominance, which has historically signaled bullish momentum for Bitcoin. Analysts, including Colin Talks Crypto, have highlighted this pattern, though Ethereum appears to be responding to additional market-specific factors.
The decline in USDT dominance has caught the attention of several market analysts. Colin Talks Crypto emphasized that every time this breakdown occurs, Bitcoin has traditionally made substantial gains. The breakdown in USDT dominance indicates a shift in the crypto market, often favoring Bitcoin’s price movement.
As USDT dominance falls, Bitcoin tends to rise, until the dominance again touches its parabolic trendline. The blue arrows on the charts show previous local price peaks for Bitcoin, helping analysts gauge where the next potential top could be. This pattern suggests Bitcoin is likely heading toward another upward move, particularly as USDT dominance continues its downward trajectory.
While the USDT dominance breakdown is viewed as a positive signal for Bitcoin, Ethereum’s market behavior doesn’t necessarily follow the same pattern. However, a decrease in USDT dominance could provide favorable conditions for Ethereum as well, given that altcoins tend to benefit when Bitcoin leads a rally. The dynamics surrounding Ethereum’s price are more intricate, with its price movements influenced by specific resistance levels and broader market sentiment.
Elsewhere, Ethereum’s technical chart shows the crypto trading within a defined descending channel. The price has faced resistance near $1,829, where it has encountered difficulty breaking above the 50-day Simple Moving Average (SMA).
This price level marks a significant short-term barrier for Ethereum. Despite this, Ethereum’s recent attempt to break above the $1,829 resistance on April 23rd suggests a potential shift in market momentum. If Ethereum manages to sustain this breakout, higher price levels could be on the horizon.
The level of $1,800 remains a level of interest, being supported by the 200-day SMA at the moment. This level has served as a long-term barrier for Ethereum in the past. The distance between the current price and this resistance implies a potential upside of approximately 52.83%. If Ethereum is to advance beyond this resistance level, then other levels are likely to be achieved and the upward trend likely to continue. However, the upward movement within the market is only possible if the market sentiment calls for it.
As of now, more than 56% of Ethereum addresses are those that are in the money, which means that these addresses have the potential support the price, in case of a favorable market, as per IntoTheBlock data. Such concentration of positive addresses is a sign of good market, as it indicate that investors are reaping more profits.
Majority of Ether holders are making their profits, a rather favorable outlook. Also, approximately 38.66% of the addresses are ‘out of the money,’ which means that significantly less number of traders are operated in the red, which is also indicative of a stable market environment.
Similarly, the level of addresses in the ‘break even’ only stands at approximately 4.76%. Notably this points to the fact that very few holders are at the breakeven prices and thus take profit selling pressure might be eased and the price can go up. Ultimately, there are few barriers to the price increase in the overall market structure at the same timeframe.
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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Ethereum Price Nears Breakout As USDT Dominance Breaks Down: More Gains Ahead? – The Market Periodical
