After recently making ATH, the ETH/USD pair has crashed more than 14% in a matter of days. This crash comes at a time the U.S dollar continues to gain strength across the board. The big questions crypto traders are asking right now are, will the growing U.S dollar strength also affect Bitcoin in the coming days or is this sell-off just a retracement?
The U.S dollars continue to gain strength after president Joe Bidden announced plans to implement trillions of dollars in new stimulus payment in a bid to revive the economy
In this Bitcoin analysis, we will be taking a critical look at the BTC and ETH charts and pointing out key levels, patterns, and price scenarios that might come into play in the coming days.
ETH/USD Forming A Flag Pattern
The ETH/USD pair is currently trading within a rising channel. We can clearly see the support and resistance zones playing out right now. This pattern is a bullish pattern but there is also a likelihood that we might see the Ethereum price break to the downside.
The most important levels to watch right now are the baseline and the resistance line of the channel. A break and close above or below these channels can be the confirmation we need for either a bullish or bearish trend in Ethereum.
One of the biggest deciders for Ethereum will be Bitcoin. If Bitcoin dumps, there is a high probability that it would take the whole crypto market down with it.
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Bitcoin Support Continues To Hold
In our previous Bitcoin analysis Bitcoin Finds Support. Prepare For Bull Run?, we talked about the possibility for the Bitcoin price to continue ranging sideways while the bulls and the bears continue to battle for dominance.
Well, 24 hours later that price prediction is exactly what we are seeing play out in Bitcoin. The question now is where will it go next?
The key level to watch for is that support represented by the green box. If the Bitcoin $29,521 support region continues to hold, we can expect buyers to eventually come in and start pushing the price back up sooner or later.
However, if the Bitcoin sellers manage to breach that $29,521 support, we can expect to see an increased selling pressure come into the Bitcoin market in the coming days.
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