In a recent analyses, AltcoinSherpa, one of the top crypto traders, delves deep into the world of Ethereum, offering insights and analysis on its current market status.

As always, AltcoinSherpa emphasizes that the content is not financial advice but rather an educational overview of the cryptocurrency market.

Ethereum (ETH) is currently in a phase where its Exponential Moving Averages (EMAs) are closely clumped together with its price. This clustering typically indicates a strong confluence for support or resistance. In Ethereum’s case, it seems to be acting as a support since the price is hovering above these EMAs.

The 200 EMA, represented by the red line, is particularly significant. Historically, it has acted as a robust support or resistance level. For instance, during Ethereum’s significant run-up in 2021, there was a noticeable gap between its price and the lagging EMAs.

Source: CoinStats

Such a gap is typically bearish, indicating that the price will eventually revert to the mean. True to this prediction, the price dipped below the 200-week EMA, interacting with it multiple times throughout the latter part of 2022. After initially acting as resistance, it flipped to support and has remained untested since.

Stripping away the EMAs and focusing solely on Ethereum’s price action reveals a choppy consolidation range. While one could argue that the market structure is bullish due to the presence of higher highs and higher lows, AltcoinSherpa believes it’s not very convincing. The higher highs don’t significantly break previous highs, and the lows are merely grinding upwards.

This current trend is reminiscent of Ethereum’s behavior in 2019, characterized by choppy price action. For instance, Ethereum’s price surged from $85 to $360, but the movement was filled with volatility and unpredictability. A genuine bull market, in contrast, would see the price consistently rising, with noticeable and convincing higher highs and lows. Currently, Ethereum doesn’t exhibit this behavior. Instead, it seems to be in a phase of low volatility and limited trading opportunities.

AltcoinSherpa believes that Ethereum will underperform Bitcoin, indicating a potential decline in the Ethereum to Bitcoin pairing. This pair has been consolidating for approximately two years, a trend that AltcoinSherpa sees as typical for this pairing.

AltcoinSherpa pointed out that when the Ethereum to Bitcoin ratio begins to decrease, it might be an opportune moment to invest in altcoins. This ratio is often viewed as a broad indicator for the altcoin market’s direction. The most favorable conditions for altcoins to thrive occur when Bitcoin experiences a significant surge, followed by a period of stabilization. During these pauses, the Ethereum to Bitcoin ratio tends to rise.

AltcoinSherpa suggests that Ethereum might continue to consolidate within a range of $1,000 to $2,000 for an extended period. While there’s potential for it to reach highs of around $2,500, the overall sentiment is that Ethereum will continue to exhibit choppy price behavior without significant volatility.

In conclusion, while Ethereum remains a dominant player in the cryptocurrency market, its current price action suggests a period of consolidation and limited volatility. As always, potential investors and traders are advised to conduct their research and exercise caution.

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The post Top Crypto Analyst Says Ethereum Will Underperform Bitcoin; Updates Outlook on ETH appeared first on CaptainAltcoin.

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