- Bitcoin and Ethereum have bounced after a brutal plunge.
- The leading cryptocurrencies have undergone 4-5% bounces from their Thursday lows.
- Ethereum may be primed to return to the downside, though, as technicals remain shaky.
- Bitcoin is also a cryptocurrency to watch as it could end up dictating the price of altcoins.
Ethereum Could Soon Hit $300
Ethereum is primed to move lower after the leading cryptocurrency underwent a strong bounce from its recent lows.
“savage sell off market wide, i think $eth is now the clearest on all timeframes. i believe 5 wave up from the lows is now complete, confimred with a 5 wave decline from the highs on 4h, where anoy move up from here i will be looking to short and treating as counter trend.”
Chart of ETH's price action from TradingView.com. Chart by crypto tracker SmartContracter (Twitter handle).
Corroborating the expectations of a short-term bounce is the ongoing state of ETH futures. According to ByBt, a crypto derivatives tracker, the funding rate of leading ETH futures markets are currently slightly negative.
Bitcoin To Dictate The Trend of Altcoins
Bitcoin — and Ethereum — may have room to move to the downside.
Cole Garner, a crypto-asset market analyst, recently shared the chart seen below. It shows that Bitfinex investors have begun to build a buy wall around the $8,800 region on Bitcoin’s chart.
This is relevant as Bitfinex’s order book has managed to predict BTC’s price directionality over recent months. For one, prior to the rally from the $9,000s to $12,000 in late July and early August, there were strong bids supporting the Bitcoin price on Bitfinex.
“Nice to see you again Bitfinex Whale. Smart money has their bids sitting at $8800. I expect the bottom will likely be around there,” one analyst explained while pointing to the below chart, highlighting the bids in the region.
Image Courtesy of Cole Garner. Chart shows Bitcoin's recent price action with the order book dominance bands from Bitfinex.
Bitcoin and Ethereum may not get that far, though. Many analysts are eyeing the $9,600-9,700 price region as a place for Bitcoin to bounce, as it would cement that the region is support as opposed to resistance.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com This Historically Accurate Trader Thinks Ethereum Could Plunge Towards $300
