Hard to believe, the recovery of LINK and ETH won't be like 2020
Many altcoins have shown their strength in the past few weeks, some of them are over 100% growth, typically Chainlink with the price up 156% on Black Thursday and Ether with children number 135%.
Is this a strong comeback for altcoins or another “dead cat bounce”? Please follow the following article of primexbt for updates
Ethereum Shows Possibility As It Reaches $200 Resistance
Recently, ETH has surged since its massive price drop on March 12 with a price drop of more than 50% (see chart below).
The uptrend in recent days is quite clear. The previous resistance levels have turned into support, causing the price of Ether to rise. Recently it was the $190 level.
Just holding this support level, ETH price has the potential to rise sharply to $210-$214, even $227-$235.
Will Ethereum still “test supply” at lower levels before the value surges even further? Of course!
This uptrend is often accompanied by retests of supply to lower prices before continuing. However, this bounce will not be like the end of 2019, when support quickly turned into resistance.
That is, this time investors in the BTC/ETH trading pair are showing stronger moves.
The starting resistance is currently at $210-$214 and $226-$235. The likelihood of corrections appearing is entirely predictable. And then, the strong support will be at $167, $150 and $122 respectively.
BTC/ETH Trading Pair Faces Significant Resistance
The BTC/ETH crypto trading pair has hit a notable support of $0.020, leading to a rally in the price of Ether to $0.026.
Since then, ETH has been hovering above the $0.0246 support. As long as this support holds, there is a chance that a "test of supply" will continue towards the $0.0268-$0.0273 resistance. This is a critical resistance area because, once crossed, resistance is warranted to extend to $0.03, even $0.036. Once this happened, the value of altcoins skyrocketed, especially those using the Ethereum blockchain platform.
However, a break from the $0.0246 support will pick up momentum for a painful drop for the altcoin. At that time, investors will have to watch the two levels $0.0229 and $0.022.
Is LINK ready for calibration?
The trading chart of the LINK/USTD crypto pair shows that a massive 156% rally brought the value of LINK coin to $3.90. Will Chainlink continue to increase without any correction? Obviously not!
Chainlink coin value was rejected at the resistance area around $3.85-$4. This is a completely natural and healthy move.
But, holding the support at $3.48 is essential. Breaking out of this support pushed the downtrend deeper with “tests of supply” at $2.90 and even $2.44.
From the chart above, we clearly see the bullish breakout of the “W” shaped trend. The resistance level was too strong, leading to the collapse of the trend as well as a move to “test supply” for lower prices.
In addition, we can also see that LINK is approaching the "life and death" milestone ($3.48) - which is the price peak and resistance level.
Only if the support at $3.48 holds, the “tests of supply” for the top can occur (predicted at $3.85-$3.99). However, a slide off this level would lead to a “test of supply” at $3.23 or as low as $2.90.
Test the support in the LINK/BTC . pair
The 12-hour chart of the LINK/BTC trading pair shows a similar bullish breakout on the failure to break above the $0.00052500 resistance level. Bearish divergences, including some degree of decline, are forerunners of this situation.
However, the bullish breakout is also approaching an important support level. Chainlink needs to hold its position in the $0.0004500-$0.00046000 support zone the recovery continues. And then, the next resistance will be at $0.00049000 if LINK makes a new high.
Conversely, if the $0.0045500 support cannot be held, the downtrend will resume with $0.=0.0004500 and $0.0040500 as two starting levels for traders.
The most probable scenario for a bounce is shown in the chart above. The RSI also indicates that the LINK coin value will tend to skyrocket along with its support zone.
