Bitcoin & Ethereum Price Action: Is the Rally Over?

Bitcoin, BTC/USD, Ethereum, ETH/USD – Technical Outlook:

• Bitcoin and Ethereum has been essentially sideways recently.
• The sideways price action appears to be consolidation within the uptrend.
• What are the most important levels to watch?

Bitcoin and Ethereum’s rise may have stalled recently, but the uptrend is far from over.

BITCOIN

After hitting a 10-month high in April, Bitcoin’s rally has stalled. Attempts to rise past the psychological 30,000 mark in recent weeks have been unsuccessful, with the result that BTC/USD looks set to drift lower towards an immediate end-March cushion at 26525. Any break below 26525 could open the door to 25300 -26000 (including 89-day moving average and February 2023 high).

BTC/USD Daily Chart

Chart Created by Manish Jaradi using TradingView

Note: In the color-coded chart above, blue candles represent a bullish phase. Red candles represent a bearish phase. Gray candles act as consolidation phases (within a bullish or a bearish phase), but sometimes they tend to form at the end of a trend. Note: candle colors are not predictive – they just tell you what the current trend is. In fact, the color of the light can change in the next beam. False patterns can occur around the 200-period moving average, or around a support/resistance and/or in a sideways/choppy market. The author does not guarantee the accuracy of the information. Past performance is not an indication of future performance. Users of the information do so at their own risk.

Earlier last month, BTC/USD pulled back from a close key resistance area: the May 2022 high at 32375, and an uptrend line from January, coinciding with the 89-week moving average – a risk highlighted in early April. See “Bitcoin Crosses Key $30000 Mark: Will it Sustain?”, published April 11.

BTC/USD Daily Chart

Chart Created by Manish Jaradi using TradingView

Still, the broader trend remains up on the daily charts – a trend that has been prevalent since January – see “Bitcoin Technical Outlook: BTC/USD Turns Bullish”, published on January 18. That said, for the uptrend to resume, BTC/USD must reach the April high of 31065. Such a break could pave the way for the January 2022 low of 32950.

ETHEREUM

The failed attempt last week to clear an immediate barrier at the end of April at 1965 suggests that the risk balance remains tilted sideways to slightly down for ETH/USD.

Daily chart for ETH/USD

Chart Created by Manish Jaradi using TradingView

Note: In the color-coded chart above, blue candles represent a bullish phase. Red candles represent a bearish phase. Gray candles act as consolidation phases (within a bullish or a bearish phase), but sometimes they tend to form at the end of a trend. Note: candle colors are not predictive – they just tell you what the current trend is. In fact, the color of the light can change in the next beam. False patterns can occur around the 200-period moving average, or around a support/resistance and/or in a sideways/choppy market. The author does not guarantee the accuracy of the information. Past performance is not an indication of future performance. Users of the information do so at their own risk.

Ethereum hit a near one-year high last month, but failed to clear a tough hurdle at the 89-week moving average, coinciding with the August 2030 high. Immediate support is at late April 1787. A lower break could reveal downside against the February highs of 1710-1740.

Daily chart for ETH/USD

Chart Created by Manish Jaradi using TradingView

Beyond the short-term, the broader trend remains up for ETH/USD, as the color-coded candlestick charts based on trend/momentum indicators show. A crack above the April high of 2142 could open the way towards 2400 (38.2% retracement of the 2021-2022 crash).

— Posted by Manish Jaradi, Strategist for DailyFX.com

— Contact and follow Jaradi on Twitter: @JaradiManish