Ethereum has continued to trade sideways for a second consecutive week. This sideways action has been alarming as it signals exhaustion from the bulls. Technicals, however, have ensured that the bears do not take hold of the market. This could see Ethereum drop below $200. On top of the sideways action, the trading volume has dropped drastically in the last week.
Ethereum Set For A Test Of $200 Support
Ethereum had a strong start to the year. In the first two months, the asset soared by more than 100%. Its impressive performance arguably triggered the altseason, which much like ETH, has since faded out.
ETH at $280 was overbought based on a Bloomberg indicator. Combined with a slumped market, ETH has had a weak couple of days. By dropping to the $220 position, the digital asset has lost more than 20%.
Going into March, analyst Luke Martin expects that the largest altcoin by market cap will test a lower low.
With the market moving sideways and trading volume slumping back to previous lows, a bullish Ethereum case is hard. Additionally, Bitcoin dominance is rising, approaching 64% at the time of writing this. This is set to make it harder for Ethereum which holds the second greatest dominance.
Have no idea what to expect on the $ETH dollar pair but relative to Bitcoin, it still looks like it wants to move lower. pic.twitter.com/ww77AmSd0S
— Luke Martin (@VentureCoinist) March 4, 2020
Ethereum (ETH) loosing To Chainlink (LINK) and Tezos (XTZ)
Despite ETH and a majority of other top coins falling, others continue to rally. LINK and XTZ are the two best performers and their bullish targets remain unmatched.
Investor entries into these coins have come at the cost of top coins like Ethereum. Ethereum and XRP are thought by some investors to have reached their tops especially in terms of adoption and price.
Investors looking for the projects that remain untapped are moving to newer and more renovative and adaptive projects such as Tezos and Chainlink in the promises of huge gains as they grow to top-ranked projects.
And as these coins continue to grow, some investors have been lured in by FOMO. With their new innovations, these projects are on a bullish hype and investors continue to flock around them.
The market as a whole remains undecided where it wants to move next. Expectations in the short term remain low but long term projections still show the market moving upwards.
