The ongoing price variation with Bitcoin does not largely impact the top altcoins like Ethereum and Avalanche, as the prices continue to trade within a range. The BTC price rebounded by over 5%, which was expected to trigger a healthy 10% upswing in the altcoins within the top 15.
However, a minor rise in the Ethereum price has raised concerns, while the top-performing asset Avalanche is also struggling to keep up the bullish streak.
In such trading conditions, the possibility of a continued bearish trend remains pretty high, as the bulls appear to be waiting to accumulate at lower ranges.
Ethereum has been trading within a descending parallel channel ever since it faced rejection at the yearly highs, much like that of Bitcoin. However, it typically determines a medium outlook as it trades above $3000 with just a rise of over 2%. The STF displays a strong resistance to the downtrend and hence it is more likely that the trend may remain descending for a long time ahead.
The RSI remains stuck within the lower range while the levels within the DMI go parallel with each other, suggesting a continuation of a consolidation phase. This also indicates the absence of the required bullish activity, which may result in bearish action ahead. The ETH price has tested the lower support of the channel a couple of times before, which has attracted the bulls. Therefore, a deep dive towards the lower support may only trigger a healthy upswing beyond the average range.
On the other hand, Avalanche (AVAX), which has been displaying significant strength in recent times, is accumulating along the lower support. In the short term, the trade appears to be in favour of the bears and hence another pullback towards the support zone could be imminent.
Despite trading in an ascending range, the price remains stuck at the channel’s lower support. The stochastic RSI, which is known for its precise variations with extreme movements, ranges with a lower trend line as support.
Furthermore, the MACD remains bullish but within the bearish range, indicating that the bulls are not actively trading. As a result, this trade setup suggests that a bearish breakdown is imminent, with the AVAX price testing local support near $30, which may attract bulls ahead.
Collectively, both the cryptos are trying very hard to rise above the bearish influence, but eventually, the Ethereum (ETH) price and the Avalanche (AVAX) price could face a bearish pullback, attracting fresh liquidity to the platform.
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