Ethereum started with an explosive rally in 2020, following the rapid growth and expansion of the decentralized financial sector, which nearly doubled the value of the asset in a few months.
However, a higher high and drop in new lows brings Ethereum back to a downtrend that an analyst says will lead to deeper new lows and possible final surrender before altcoin once again rises.
ETH / USD Downtrend Continues, Capitulation and New Lows Coming
During the 2017 crypto hype bubble, only Bitcoin is not the center of attention. Ethereum was also experiencing excessive appreciation in the heels of the first coin boom.
Investors were buying Ether fiercely and exchanging them for access to early-launch cryptocurrencies built as ERC-20 tokens in Ethereum's protocol.
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The asset eventually reached its all-time high above $ 1,400.
However, since then, after a glimmer of hope that the asset was above 90% above the all-time high and at the beginning of the year, a bullish trend is just beginning – just led to a lower high and a new low low followed.
Set a series of low high and low low continuous what is the downtrend?and few assets fit this recognition and Ethereum against the dollar.
Until Ethereum goes above $ 150 and holds on as a support, a crypto analyst sees little reason to expect higher ETH prices in the coming days.
The USD pair looks even worse.
ETH dropped 90% + and now continues to put it in low highs and low lows.
I like being as bull as the next guy but I see very little reason to expect higher prices unless you trade ETHUSD and close below $ 150. pic.twitter.com/manab9o2jn
– DonAlt (@CryptoDonAlt) March 25, 2020
Ethereum Must Bull This Line Against Bitcoin
While Ethereum is clearly locked in the downtrend against the dollar, it's not very good against Bitcoin.
The leading altcoin on the market has lost a significant support line against the number one cryptocurrency, and until it recovers this level, the same crypto analyst as above expects new lows and possible "surrender" in Ethereum traders in the ETH / BTC trade pair.
Since Ethereum performed very strongly against Bitcoin at the beginning of 2020, the crypto market was convinced that a new sub-season began – a period when altcoins like Ethereum performed better than the first cryptocurrency.
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And while the over-sold altcoins and Ethereum often led altcoin rallies against Bitcoin, all signs marked an incoming sub-season.
However, malvef, which caused the crypto market to crash earlier this month, hit altcoins such as Ethereum and much tougher than Bitcoin, which led the asset to greatly support BTC trading pairs.
Until Ethereum recovers this line, Bitcoin is doomed to perform better than the second largest cryptocurrency in the market for the foreseeable future.
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