Altcoins
Bearish flags are flying on Ethereum and this popular Altcoin as they could be poised for a 10% pullback
The continued price variation with Bitcoin does not have a major impact on top altcoins like Ethereum and Avalanche as prices continue to trade within a certain range. THE BTC Price has rebounded more than 5%, which should trigger a healthy 10% rise in altcoins within the top 15. However, an uptick in the price of Ethereum has raised concerns, while the best performing asset Avalanche is also struggling to keep up. the bullish sequence.
Under such trading conditions, the possibility of a continued downtrend remains quite high as the bulls appear to be waiting to accumulate into lower ranges.
Ethereum has been trading in a descending parallel channel since being rejected at yearly highs, much like that of Bitcoin. However, it generally determines an average outlook as it trades above $3,000 with an upside of only over 2%. The STF shows strong resistance to the downtrend and therefore it is more likely that the trend will remain bearish for a long time.
The RSI remains stuck in the lower range while the DMI levels are parallel to each other, suggesting a continuation of a consolidation phase. This also indicates the absence of the required bullish activity, which could lead to further bearish action. THE ETH Price has tested the lower support of the channel several times before, which has attracted the bulls. Therefore, a deep dive towards the lower support can only trigger a healthy recovery beyond the mid-range.
On the other hand, Avalanche (AVAX), which has shown significant strength lately, is accumulating along lower support. In the short term, the trade appears to be in favor of the bears and hence another pullback towards the support zone could be imminent.
Despite trading in an ascending range, the price remains stuck at the lower support of the channel. The Stochastic RSI, known for its precise swings with extreme moves, sits with a lower trendline as support. Additionally, the MACD remains bullish but in a bearish range, indicating that the bulls are not actively trading. As a result, this trade setup suggests that a bearish breakout is imminent, with the AVAX Price testing local support near $30, which could attract bulls.
Collectively, both cryptos are working to overcome the bearish influence, but eventually, Ethereum (ETH) price and Avalanche (AVAX) price could face a bearish pullback, attracting new liquidity on the platform.
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