Insights > Technical analysis > Ethereum price hits $3500, altcoins outperform Bitcoin again

Ethereum price hits $3500, altcoins outperform Bitcoin again

5 May 2021

temps de lecture 3 minutes

avatar-auteur Julien Moretto

The trend seen over the past month in the cryptocurrency market continues. While Bitcoin is hovering between €41,000 and €50,000 ($50,000 and $60,000), altcoins are performing better overall. Bitcoin is stable at +1% on the week and is still trading around €46,000 ($55,000) on May 5. The share of its capitalization in the overall market has been steadily decreasing since the beginning of the year, falling to 44%. For the past few days, Ethereum has been benefiting from this, signing new price records, and supported by a very active ecosystem.

But other altcoins, less capitalized, and sometimes without serious fundamentals, are performing very strongly in recent days. like Dogecoin up 143% over seven days. The market has therefore surely entered a somewhat irrational phase. It is impossible to predict exactly how long this market phase will last. The longer the euphoria lasts, the more we advise reducing any exposure to low capitalized assets. Indeed, the corrections that follow such phases are often strong. Other altcoins with stronger fundamentals, such as Chainlink (LINK) or VeChain (VET) are performing well this week. The underlying trend remains bullish in the market anyway. However, a bearish parenthesis cannot be excluded between now and the end of May.

Finally, on the macroeconomic front, the news of the week came from U.S. Treasury Secretary Janet Yellen who, for the first time, hinted at the possibility of an interest rate hike. As a result, the abundance of liquidity that has been present in the markets for the past year should eventually be reduced. A change of tone in the face of the continued rise in the price of key commodities such as copper and oil, and signs of economic recovery in the US. If monetary policy does tighten, then investors will initially become more selective and cautious. This could indirectly have a negative impact on the trend of the crypto-currency market. To be continued.

  • According to CoinGecko, the market capitalization signs new records, at 2350 billion dollars against 2150 last week.
  • Bitcoin’s dominance drops drastically to 43.6% market share from 47.8% last week.
  • The best performance in the top 50 can be attributed to Dogecoin (DOGE) with +143% over one week.

We invite you to discover our video analysis (in French and dated from May 5):

Bitcoin (BTC)

The Coinhouse recommendation :
Buy if break up of the $58,000 level

  • Bitcoin is still trading at around 46,000€ ($55,000) on May 5, stable at +1% for the week. The resistance zone between €46,400 and €48,000 ($56,000 and $58,500) has rejected the price for now. We will wait to see the price end a day above $58,500 before buying again. If such a move takes place, the odds are high that we will make a new all-time high on Bitcoin. On the other hand, if we break the bullish channel highlighted on the chart above, the odds are more likely to see the price fall to between €35,000 and €38,300 ($42,000 and $46,000). If this scenario takes place, we will be looking for medium/long term purchases in this area.

Ethereum (ETH)

The Coinhouse recommendation :
Wait

  • Ethereum (ETH) is continuing a nice uptrend and performing better than Bitcoin. It gained 29% this week and is now traded at €2,800 ($3,400) on May 5. Last week, we advised buying if the price ended a day above €2,250 ($2,700). In continuation of this strategy, we now advise to wait for a resistance zone to form. We are not taking partial profits this week as the bullishness is strong and the price of Ethereum could continue towards new highs and especially towards $4,000.

VeChain (VET)

The Coinhouse recommendation :
Buy on the $0.13 to $0.15 zone

  • VeChain (VET) is consolidating this week by dropping 4.5%. The asset is trading around €0.16 ($0.20) on May 5. But like many altcoins, VeChain has started a strong uptrend since the beginning of the year. We are currently in a range. It is quite possible that the price is consolidating before resuming a new bullish phase. The most strategic thing to do is to try to accumulate some VeChain at the bottom of the lateralisation zone highlighted on the chart, i.e. between $0.13 and $0.15. The price has just been rejected by an intermediate resistance zone located between $0.20 and $0.22. If, however, Vechain’s price ends the day above $0.23 before returning to the bottom of the lateralization zone, then it will be possible to enter the buy side to play the continuation of the rise directly.

Tops & flops of the week (top 50 marketcap)


Tops

1- Dogecoin (DOGE) : +143%
2- Ethereum Classic (ETC) : +129%
3- OKB : +111%


Flops

1- Crypto.com Coin (CRO) : -9,7%
2- IOTA : -9%
3- Klaytn (KLAY) : -8.7%

All information in this article is provided for informational purposes only, although it has been compiled from reputable and reliable sources. It does not constitute an offer to buy or sell digital assets, nor does it constitute an offer to provide services with respect to digital assets, nor does it constitute advice, inducement or recommendation to trade in such digital assets. It constitutes simple information that is under the user’s absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2FGW2ek) and accept the various risks listed and defined on our legal warning page (https://bit.ly/3c4sQKc)

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