Ethereum (ETH) has seen a significant price drop following an impressive bullish breakout last week. The leading altcoin, which has a fully diluted valuation of around $377 billion, has fallen more than 6% since Tuesday, trading around $3,133 in mid-session New York trading on Thursday, November 14.
However, the fear of mass capitulation in the cryptocurrency has declined significantly since Bitcoin entered its price discovery phase. As of this writing, Ethereum’s Fear and Greed Index has surged to 78%, representing extreme greed among traders.
Key levels to watch for Ethereum price going forward
Ethereum price recently managed to rebound from the 200-week moving average (MA), confirming the revival of bullish sentiment. For the first time since the August 5 cryptocurrency crash, the ether price has closed consistently above the key support/resistance range of $2,800 to $2,900.
Cryptocurrency analyst Michaël van de Poppe reminds investors that altcoins have been moving closer to Bitcoin over the past two years. On the daily timeframe for the ETH/BTC pair, a bullish reversal pattern has formed with support around 0.034, along with rising divergences on the relative strength index (RSI).
As interest in Ethereum from institutional investors increases significantly, the price of Ethereum is expected to rise further.
For example, the U.S. spot Ethereum ETF has accumulated more than $500 million in funds in the past few days.
Altseason Schedule
Well-known cryptocurrency analyst Benjamin Cowen said that altcoin investors should not buy meme coins out of fear of missing out, because the real altcoin season has not yet begun. In addition, Bitcoin's dominance in the altcoin market has been increasing over the past two years.
Cowen stressed that the real altcoin season will come when Bitcoin dominance drops significantly. Currently, the OTHERS/BTC pair has been falling, reaching its lowest level after Bitcoin price surged above $93,000 on Wednesday.