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Ethereum: strong technical structure while Bitcoin remains weak
Ethereum: strong technical structure while Bitcoin remains weak
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Ethereum: strong technical structure while Bitcoin remains weak

By Federico Izzi - 28 Jan 2021

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While Bitcoin’s technical structure remains weak, in contrast to the one of Ethereum, the up and down continues: today, in contrast to yesterday, there is a group climb for the whole sector. Over 95% of cryptocurrencies are in positive territory. 

coin360 20210128
Source: COIN360.com

There are many double-digit rises. The highest jump is that of Dogecoin (DOGE) which flies over 80%, with quotations rising over $0.015, the highest level in the last 3 years (January 2018).

DOGE 20210128

This is thanks to a tweet from the now-famous SubReddit group Wallstreet Bets, whose founder this morning mentioned the Dogecoin token and asked if it had ever risen to €1. This created a meme and attracted the attention of traders that led to GameStop’s rally in recent days. Through this tweet, Dogecoin’s price is rising fast.  

Other gains of the day among the big names included Polkadot (DOT) which rose double digits to above $17. Chainlink (LINK) followed, returning to the all-time high of $25 recorded at the beginning of the week. 

Volumes also jumped up, returning to trade in excess of $415 billion. Bitcoin’s dominance fell by more than 1% to 62.5%. Ethereum remains above 16%, while Polkadot, the third-largest by capitalization, consolidates its market share above 1.6%.

DeFiPulse 20210128

DeFi’s TVL remains near all-time highs at just under $26 billion. Tokenized bitcoin continue to grow, today above 43,500 units.

BTC 20210128
Bitcoin chart by Tradingview

Bitcoin (BTC) 

Bitcoin’s technical structure continues to remain weak. The price has been fluctuating around the $32,000 mark for a week now. The technical structure therefore remains unchanged with a side-channel becoming increasingly important. 

If it breaks upwards above $34,000 or downwards below $29,000, it will most likely start to mark a more precise directionality.

ETH 20210128
Ethereum chart by Tradingview

Ethereum (ETH): a strong technical structure 

In contrast to Bitcoin, Ethereum continues to show signs of strength, with prices not suffering from the weak phase of recent days. In these hours, Ethereum prices are managing to stay latched on to $1,350, confirming a bullish trend even in the short term. 

Should it maintain this technical structure, in the event of a break of $1,480, the price of ETH is destined to rise further. Conversely, the first sign of weakness would only occur with prices below $1,100.

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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