Ethereum (ETH) remains the most impactful altcoin as it breaks out of a bull flag. $ETH dominance has increased from 7% to 13.75% since April. However, Fed Chairman Powell’s speech later today could stop the second biggest cryptocurrency in its tracks if rate cuts are not favoured by the Federal Reserve.
If things are looking good for Ethereum, history tells us that this is a healthy sign for the crypto market as a whole. When $ETH powers higher, the altcoins will generally follow.
Therefore, the current $ETH breakout of its recently formed bull flag would appear to be a good omen. That said, a potential black cloud is gathering on the horizon in the form of the Federal Reserve chairman saying no to rate cuts in his Jackson Hole speech later today. If this does happen, wouldn’t $ETH go into a major corrective phase along with Bitcoin and the rest of the crypto market?
ETH dominance is shown in the weekly chart above. It can be seen that dominance has been on a real rampage since April. However, a strong resistance level has been reached at 14%. If the $ETH bulls can help to break through here, the next targets are 16%, 18%, and then 20%.
As seen in the 4-hour chart for the $ETH price above, the breakout has occurred and has been confirmed, at least in this short time frame. Now the bulls are battling with the slight resistance at $4,325.
The Stochastic RSI indicators are coming to the top, but the RSI indicator below has just broken through the descending trendline. The scene appears to be set for the next leg higher.
The weekly view for the $ETH price also looks very good. Although the recent rally did stop just short of a new all-time high, the price has come back to this modicum of horizontal support at $4,300 from where the next, possibly successful assault on the high can take place.
The Stochastic RSI has the indicators bumping along at their top, while the MACD reveals the indicator lines fairly widely apart and on nice upward angled trajectories.
Will Jerome Powell’s speech around 3 hours from now add impetus to the $ETH charge towards a new all-time high, or will it put the brakes on and end this particular rally?
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