Ethereum in full comeback, will altcoins benefit from it?

In this new crypto weekend update, we will analyze the general market situation by looking at various elements such as the total market cap, the situation of altcoins and many other things! We are now entering summer, which may indicate that the coming weeks will be quite quiet. But is it done? Not really, which will lead us to identify the levels to watch for cryptocurrencies in the coming weeks.

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Cryptocurrencies continue to move under resistance

The price of the total market capitalization of cryptocurrencies on the 1D unit of time (Bitcoin, Ethereum and altcoins).

Since last week, the situation has not fundamentally changed for the cryptocurrency market, as it is still developing below the major resistance zone of $1147 billion. As a result, the words may seem repetitive, but as long as the market fails to break free from this technical zone, it will be difficult to imagine a new bullish leg.

However, nothing assures us that the market will necessarily fall significantly. In fact, the market is currently in a period of lateralization, remaining above the $1034 billion technical threshold. This is the most important level to watch, the one that will trigger the downward momentum if the price goes below this level.

In fact, it was previously a particularly important resistance in the market which, when broken, paved the way for the summer 2022 highs, which is quite interesting. Therefore, see this level as a complementary pivot point to the $920 billion one.

Altcoins Ready for a Short Bull Run?

Cryptocurrency market prices on the daily time unit representing all altcoins and excluding the capitalization of bitcoin and ethereum.
The price of the total market capitalization of cryptocurrencies on the H4 time unit (Bitcoin and Ethereum excluded).

For the use of altcoins, we have voluntarily scaled H4 in order to better study the development of capitalization in the field. After rebounding perfectly at the lower end of the range, altcoins have built a new, smaller range, between $340 and $352 billion. Acting as resistance for several weeks, price has just overcome it, is this another false breakout?

If this is the case, we will again have the reintegration into this new range with high probabilities of a return to the price of the lower bound of $340 billion. However, if the current momentum is sustained and there is price acceptance above the current level, it will likely see a return of altcoins to the pivot point of the $363 billion range.

Therefore, the bias that is currently in H4 is bullish. Nevertheless, as long as the pivot is not recovered, it will be difficult to find altcoins at the upper limit of the range, especially since other resistances will present themselves on the way, such as the $373 billion technical level.

Is the fall approaching for the dominance of the king of cryptocurrencies?

Course of the dominance of the king of cryptocurrencies against the rest of the market on a daily scale
Course of Bitcoin dominance over other cryptocurrencies over the unit of time 1D

In the last few months, we have been aware of the situation with the dominance of the king of cryptocurrencies. In fact, it has developed for several weeks below a technical resistance of 48.25% and has not managed to break free from it for a long time. As a result, we had the opportunity to build a bearish scenario with a return to dominance at the end of 2023 in the 40% technical zone.

In this context, are we witnessing the beginning of a lasting bearish leg for the dominance of the king of cryptocurrencies? Now keep an eye on the first technical support which is at 46.85%. As long as it is not lost, the scenario will be less likely. However, if this level falls, a new low will be registered, which will increase the probability of the installation of a downward trend.

Bitcoin dominance could thus return to the technical level of 45.47% dominance during the month of June. This could provide a hypothetical upside for ethereum, which, let’s remember, is sort of the leader of altcoins when it outperforms the king of cryptocurrencies.

Ethereum regains strength against bitcoin

Chart representing the price of the cryptocurrency ethereum against bitcoin on a daily basis
Ethereum price against Bitcoin over the unit of time 1D

Against bitcoin, ethereum is particularly interesting to watch as it broke upward of an oblique resistance under which it had developed since early 2023. The crossing of this oblique resistance, explained by bitcoin’s strength increase since January, shows a change in trend in the balance of power that exists between ethereum and bitcoin.

Now that there is price acceptance above this oblique resistance, converging with the horizontal level of 0.068BTC, the bias is bullish. However, there is still a long way to go as ethereum approaches a key resistance at 0.072BTC.

Having been below this level for several months, it is very likely to see a price reaction when it returns there. Thus, this is when the buyers will have to come up with a strong bullish reaction as a rebound from this level will allow the price to go to 0.075BTC. What needs to be noted is that such a scenario would be a boon for altcoins to stand out and in turn deliver strong performances.

DeFI cryptocurrencies are now on hold

The price of the capitalization of cryptocurrencies of decentralized finance on the unit of time 1W
Decentralized finance cryptocurrency capitalization price over time unit 1D

To conclude this analysis, we can make a brief observation of the current situation of decentralized financial cryptocurrencies. Although ethereum may recover strongly in the last few days, this is by no means a guarantee that all altcoins will take 30% per day for months. Currently under oblique resistance, the $41.6 billion support is particularly well defended by the market.

If ethereum extends its rise over the next few weeks, this would be the ideal context for a further increase in the capitalization of decentralized financial cryptocurrencies. If the oblique resistance that you see on the chart is broken, the price will go to $46 billion before finding resistance at $52.6 billion.

Here we are at the end of this analysis of the cryptocurrency market. It is clear that with the strong recovery of ethereum, the dominance of bitcoin has lost significant power, which makes us monitor the reaction it will have to its support. Although DeFi capitalization is amorphous, altcoins have recently broken free of technical resistance. This dynamic could become particularly interesting and lead to some nice gains, provided ethereum doesn’t spoil the party with a bearish leg. While bitcoin was the king of the market at the start of the year, we are potentially witnessing a change in dynamics that should alert you and make you watch ethereum in the next few weeks.

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