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The cryptocurrency sector may soon experience a stronger altcoin phase, as indications suggest a possible rally is on the horizon. The Ethereum/Bitcoin chart suggests that ETH and other altcoins are gaining momentum.
Ethereum RSI and MACD signal bullish momentum
As observed by a crypto analyst, Gordon Gekko, there has been a breakout of the Relative Strength Index (RSI) on the ETH/BTC daily chart. The breakout signals that there is increased buying strength from investors in the market. It implies that Ethereum is gaining momentum relative to Bitcoin.
Notably, Ethereum is holding above a critical support zone as the altcoin has not dipped and stayed below its support area of $3,000. Earlier, within the last 24 hours, it slipped to a low of $2,992.23 briefly before it regained momentum, hitting a high of $3,167.93.
As of press time, Ethereum exchanged hands at $3,094.46, which represented a 1.09% increase within this period. This follows the market-wide rebound as the Crypto Fear Index hit a historic low of 16. The plunge in this metric triggered the risk appetites of market participants.
Despite the willingness to be exposed to risk, Ethereum investors are still cautious, as trading volume remains in the red zone by 29.83% at $34.4 billion. Analysts anticipate a reversal of this soon, as the community looks forward to the upcoming Fusaka upgrade in early December.
The upgrade will introduce PeerDAS to boost layer-2 data capacity and reduce transaction costs. A lower transaction cost could spark increased network activity that might positively impact the price outlook.
Additionally, Gordon Gekko noted that Ethereum’s Moving Average Convergence Divergence (MACD) has crossed bullish. The 12-day and 26-day MACD movement signals an upward trend for Ethereum.
Historically, this is a positive indicator because, when ETH/BTC turns bullish, altcoins often witness a rally as Ethereum is one of the main indicators of altcoin market strength.
Bitcoin lags as market awaits clear direction
Meanwhile, Bitcoin has only been able to manage a 0.31% increase to change hands at $91,424.57 within the last 24 hours. This is despite the renewed acquisition by El Salvador in a move to increase its Bitcoin portfolio.
The development has not been sufficient to trigger renewed buying interest on the market. Bitcoin trading volume is down by 32.12% to $79.05 billion as the price continues to fluctuate.
Many investors are still monitoring the price outlook and making predictions before rekindling their interest in the flagship coin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team