Ethereum (ETH) All Set To Kick Off The Altcoin Rally As Early As February

Ethereum (ETH) All Set To Kick Off The Altcoin Rally As Early As February

Ethereum (ETH) is all set to break out against Bitcoin (BTC) in the weeks ahead. The weekly chart for ETH/BTC shows that the price is trading close to the 5 Week EMA. Soon as it breaks above that level, we will see Ethereum (ETH) kick off the next altcoin rally where most cryptocurrencies will gain against Bitcoin (BTC). In December, 2018 Ethereum (ETH) broke out against Bitcoin (BTC) and successfully climbed past the 21 Week EMA. Since then, this level has acted as a strong support. At the moment, the weekly candle is trading just above the 21 Week EMA but faces strong resistance at the 5 Week EMA. RSI for ETH/BTC shows that there is plenty of room for a rally that could see the price breaking its historical trend line resistance.

Dwindling trading volume on exchanges over the past few weeks have made it easier to swing the price in either direction. Considering that ETH/BTC is trading close to its trend line resistance, any attempt to break out at this point has a very high probability of being successful. The low volume means that such a move would also not require much capital. Soon as Ethereum (ETH) breaks the trend line resistance, we will see a lot of new money flow into the market. Until recently, most blockchain projects including Ethereum (ETH) were in experimental stages. Some of them succeeded while other failed but very few of them have actually delivered the goods so far. Ripple (XRP) seems to be leading the race in this regard along with projects like Golem (GNT) but Ethereum (ETH) has just been a blockchain to raise money.

Crypto Kitties, the Dapp that was built on Ethereum (ETH) to showcase the potential of the Ethereum blockchain ended up choking the entire network. Recently, the Constantinople upgrade was delayed because of some security flaws. This is what we have seen so far. However, things are going to change rapidly in 2019 as most of these projects are very close to delivering working products. Ethereum (ETH) is going to be at the forefront of such projects mainly because of its adoption, recognition and influence in the industry.

Corporations like Microsoft, Alibaba, Google and Amazon are one heartbeat away from putting Ethereum (ETH) to use. This would see its adoption grow manifold and it could be the catalyst that could push its price to five digits in a few years’ time. From an investment standpoint, Ethereum (ETH) is at a point where the risk/reward is very favorable for long term bullish entries. The 4H chart for ETH/USD shows that the price has retraced to the 61.8% Fib extension level once again, but it seems to have already bottomed out. The next few weeks will see ETH/USD formally begin a new cycle and kick off the altcoin rally which would see Ethereum (ETH) along with many cryptocurrencies ultimately reach new all-time highs against Bitcoin (BTC).

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