It’s now or never for Ethereum. Fuel for the final push? | Cycle Edge | Coins | January 2024

Fuel for the final push?

We believe that Bitcoin is in the process of forming a mid-cycle high, as we highlighted in our last cryptocurrency article. However, this is not a short-term disadvantage of all cryptocurrencies. At least not yet. Compared to Bitcoin, Ethereum has shown significant strength in the value space. Last week’s candle was able to close above the downtrend, but it is having a tricky time at the 0.0596 level, which has been highlighted several times.

Ethereum currently supports around $2500. This area (minimum $2375) is a mandatory holding area to prevent further modifications. On the positive side, the $2975 area looks attractive for a final advance before a more meaningful correction. However, the next section shows how this depends on Bitcoin’s topping pattern.

Bitcoin, please be kind

Ethereum’s next move will depend on the type of topping pattern Bitcoin puts into it. If Bitcoin decides to continue its downtrend without a retracement, it will be game over for the rest of the cryptocurrency market in the near future.

However, while Bitcoin retraces similar to its 2017/2018 highs, Ethereum and some altcoins could still rise once more if it enters a topping pattern. At that time, Bitcoin hit its highest point in December 2017. However, during the subsequent high pattern, Ethereum was able to move up a notch before eventually joining a correction with Bitcoin.

Please note that we are not calling for a major peak in Bitcoin (like in 2017/2018), but rather a mid-cycle peak leading to a meaningful correction, followed by further upside.

This time, Bitcoin likely reached its mid-cycle peak during the Bitcoin ETF announcement. However, the question is whether there is a similar topping pattern in the works that could allow Ethereum to reach the $2975 level before ETH joins BTC. We believe that such developments are very possible as long as Bitcoin holds up.