Over the last 24hr, Ethereum and Chainlink have been the market outliers, attempting to trigger a reversal for altcoin markets. Bitcoins price has seen minimal gains, while altcoin markets are showing more bullish sentiment. We take a look at short term technical analysis for Ethereum and Chainlink to determine whether or not the recent reversal is a change in sentiment.
At the time of this report, ETH price is $372.60 , seeing a +11% leg up the last 24hr. Despite the +11% rally, Ethereum is still down -15.2% over the last week.
At the time of this report, LINK price sits at $12.91, seeing +10.5% growth over the last 24hr, which is almost identical to Ethereum price action. Despite the reversal, Chainlink is still down -12.7% over the last week.
Ethereum and Chainlink leading the market reversal
In recent Bitcoin technical analysis , it was outlined that Bitcoins price has struggled ever since the US Dollar rallied off yearly lows. With this being said, altcoins markets have followed sentiment, and have sold off significantly over the last week. Yesterday, altcoins built upward momentum and showed signs of changing sentiment despite Bitcoin underperforming the market. Ethereum and Chainlink are attempting to lead the market reversal, seeing the following price action over the last 24hr:
- Ethereum: +11%
- Chainlink: +10.5%
- Bitcoin: +2.7%
- XRP: +4%
- Cardano: +6.6%
- EOS: +2.8%
Ethereum Technical Analysis
The recent sell-off in ETH price pushed it down to the $335 support zones. Ethereum was able to maintain that support level and build bullish momentum. The fact that Ethereum did not reject this support level is a short term bullish indicator.
Based on current price action, three different price levels will be on watch. Traders will be watching Ethereum and making sure that ETH price does not reject support at $335. As long as it stays above $335, many will expect ETH to test $405 resistance in the near term. On the contrary, if Ethereum fails to hold $335, it would then put bears in full control, signaling a potential test to support at $287.
Chainlink Technical Analysis
A few days ago, LINK price sold off with the market and retested $10.75 support levels. Chainlink was able to maintain this level and build positive momentum which was a bullish indicator. If we compare the Chainlink and Ethereum charts right now, we will quickly see similarities in terms of both altcoins building positive momentum off key support zones.
Similar to ETH price, traders will be watching three different price levels for Chainlink. LINK price is about to test $13 resistance which would be bullish is broken. If LINK can hover above $13 and maintain that level, the digital asset could test $16.10 resistance in the short term. On the flip side, if Chainlink fails to accept $13 levels, traders will be looking at the potential of a “bull trap.” In this scenario, LINK price could give up positive momentum and retest $10.75 support levels.
Image Source: Pixabay