Ethereum has held up relatively well in the latest Sunday slump for Bitcoin, but that could change, say analysts.
Ether prices took a little dip but remain above $3,100 while Bitcoin crashed below $90,000 and has not recovered at the time of writing.
Analyst ‘DrBullZeus’ observed that ETH has been trending lower for a while now, but the structure here is starting to look familiar.
“Price is struggling with the descending trendline, similar to what we saw earlier in the year before ETH finally bottomed.”
They identified a fractal that, if it plays out, could send the asset crashing back to around $2,500 before pushing back above the trendline. It is a potential repeat of what happened in April when ETH dumped to multi-year lows around $1,500.
However, a clean breakout above the trendline resistance “would be the first real sign that momentum is shifting back in favor of the bulls,” the analyst added.
MN Fund founder Michaël van de Poppe noted that the week ahead will be very volatile due to the raft of economic data in the United States and the Bank of Japan rate cut. He also observed that ETH was holding up better than BTC.
The analyst pointed out a decline in BTC dominance compared to Ether, adding that since July, “markets have shifted from Bitcoin only toward ETH only; however, mass hasn’t picked up this momentum yet, as most of the altcoins are extremely down,” which is “mispriced.”
“Ethereum is an asset that, over time, has always proven to reward those who think in the medium/long term, especially when sentiment is poor, and the market is dominated by fear,” crypto investor EliZ told their 600,000 followers on X on Sunday.
They added that ETH never takes off when everyone expects it to, and usually does the opposite.
“Then, when BTC slows down and ceases to be the center of attention, capital begins to shift. And that is when ETH changes pace. It has always done so: after long, boring periods, rapid, decisive movements occur, often when few are still well positioned.”
Ether prices took a minor dip as BTC tanked into the high $87,000 level, but it remained above the psychological $3,000 level this time around. The asset was holding above $3,100 during the Monday morning Asian session while BTC floated around the mid-$89,000 zone.
Bitcoin has fallen 2% over the past week, whereas Ether is up 0.5%. That “capital rotation” analysts often talk about may be slowly happening at the moment.
