Ethereum and Bitcoin poised for a short-term rebound before further losses
|- Ethereum is currently trading at $342 after defending the $331 level.
- Bitcoin is trading sideways, waiting for clarity in the short-term.
Both Ethereum and Bitcoin slipped below significant support levels after the U.S. Dollar had a notable rally.
The entire crypto market has been inversely correlated with the dollar Index and directly correlated with the stock market. Meaning that every time the U.S. dollar goes up significantly, there is a good chance that the crypto market plummets.
BTC/USD 1-hour chart
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It seems that Bitcoin is bouncing back up on the 1-hour chart after defending a support level at $10,357, establishing a higher low at $10,359, just $2 above the previous one. Bitcoin's price has now also climbed above the 21-EMA and eying up the last resistance level at $10,534.
BTC/USD 15-minutes chart
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BTC price has created an uptrend here, climbing above the 50-SMA and using it as a support level afterward. In the short-term, it seems that the flagship cryptocurrency is poised for a rebound above $10,534 but remains in a downtrend on the longer-time frames.
ETH/USD 1-hour chart
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The smart-contracts giant has formed a symmetrical triangle pattern as the upper and lower trendlines meet at the apex on the right side. Although these patterns serve as a continuation of the current trend, after ETH's price pierced through the upper trendline, it could be considered a reversal pattern. The price of Ethereum is now getting rejected from the 20-SMA.
ETH/USD 15-minutes chart
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On the 15-minutes chart, Ethereum price has established an uptrend, and it's eying up $348 as the next resistance level.
ETH IOMAP Chart
According to the In/Out of the Money Around Price chart provided by IntoTheBlock, the next cluster of addresses that bought ETH is found at $348 but only has a volume of 690,000 ETH is lower than the cluster of support at $339 with 1,420,000 ETH in volume. The odds clearly favor the bulls as the support seems to be stronger than resistance in the short-term.
For this number of reasons, BTC and ETH are both poised for short-term bounces. Ethereum could hit $350 if the resistance level at $344 breaks. On the other hand, if the significant support area at $339 is broken, we could see the digital asset re-test $300.
Bitcoin needs to break $10,534 for a clear bounce towards $10,700, but will re-test $10,000 if $10,357 fails to hold.
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