ETH taps final demand zone with the price action underperforming the one of BTC which is a common trend among the bigger altcoins. There’s no question that the BTC rally is creating some tailwinds for other altcoins but it has not been enough to enhance the parabolic ETH movement as we can see in today’s Ethereum news.
This caused the cryptocurrency to flash major signs of weakness against BTC which is now between a key long-term demand zone. One analyst said that ETH taps the final demand zone which could mean that it will start building momentum from here. ETH was seeing some lackluster price action in the past few days despite Bitcoin’s huge momentum. Most analysts believe that it will gain enough momentum to match the Bitcoin gains and even surpass them.
For this to happen, the cryptocurrency has to overcome the selling pressure that is laced over the upper $600 region as another traded also pointed to the final demand zone saying that ETH will undergo a bottoming in order to rally further. At the time of writing, Ethereum is trading down under 1% with a current price of $640 which is around the same price at which it was trading over the past day.
Yesterday morning ETH was able to rally higher to $677 before it lost all of the momentum that it saw a huge decline to the lows of $628. Although it was able to rally higher from these lows, with more signs of weakness as the BTC trading pair is hovering at a crucial support region. One trader believes that the weakness ETH posed against BTC led the ETH/BTC pair to reach a key demand zone. He thinks that it will act as a long-term base of support for it to grow further:
“ETH- 3D: Eventually soon we will start trending again on the BTC pairing. If I had to bet, this will be one of the last times we really visit this demand zone, and I don’t see ETH dropping below.”
The upcoming few days should give us some more light on the possibilities on the market moving and which trend it will catch up but ETH has to hold parity with BTC in the near-term so it is able to protect itself from further losses on its pair.