Most altcoins do not have two legs to stand on. Non-specialised altcoins are rarely in the limelight with isolated pumps and dumps, while others depend on the price of bitcoin. And when the volatility of the royal coins runs out, investors dilute their reserves. This is the case for most altcoins, but not for the biggest of the lot, Ethereum
The second largest cryptocard on the market, unlike the rest of the minority pieces, has found its marks. Whether because of the threat of Plus Token’s discharge or a mistake in the transaction fees, Ethereum has seen its own movement. However, this move, which had been consistently bullish until June, pushing the price of ether up to $250, is now trading sideways
Since reaching a double-digit level in March 2020, after Bitcoin’s Black Thursday fall, the ether has traded in a strongly rising channel, forming higher highs and lows each week. From May 26 to June 2, the price of Altcoin rose 25.7% from less than $200 to $252, while the rest of the market remained stable. But since the ether reached the support level of $253.47, a level it last broke at the end of February and then pushed down on March 6, one week before “Black Thursday”, it has entered a parallel channel. In the lower part of the channel is the $217.48 support, which was brushed off on June 28, and since then the price has risen steadily over the past week
Given Ethereum‘s recent stability, its 24-hour trading volume has declined. At the time of going to press, Coinmarketcap reports that its 24-hour trading volume is $5.24 billion.
Unsurprisingly, the Bollinger Bands for ETH have been tightening since June 24th. However, the simple moving average of the latter, which was below the bands last week, is now in line with today’s candlesticks. The Chaikin Money Flow [CMF] has been declining since the beginning of June and is now at 0.06, its lowest point since May 25. The last time the Aether saw a negative CMF valuation was in March, when the price started to fall below 100 dollars again
Stable movement may not be a very bad thing for Ethereum, especially considering that Bitcoin has been trading within a certain range since the beginning of May, even before it was halved. But in times of low volatility, a healthy volume counts, Ethereum’s daily volume is 40% of Bitcoin’s daily volume. That being said, if Ethereum continues to trade in the $217-253 range with sufficient volume, it could follow in the footsteps of a Bitcoin movement and return to its upward channel.