by Eliman Dambell
Prices of ETH and BTC were mainly unchanged to start the weekend, as market activity slowed, mainly due to the Easter holiday. Price consolidation comes after a week of bearish pressure that sent the world’s two largest cryptocurrencies towards key support levels.
Bitcoin was once again trading marginally above the $40,000 level on Saturday, as markets remained quiet as a result of the Easter break.
BTC/USD rose to an intraday peak of $40,618.84 to start the weekend, following a low of $40,009.09 earlier in the session.
Recent price consolidation comes following a two-week streak which saw bitcoin lose close to $10,000 from its value.
Typically, following a bullish or bearish trend within a relatively short span of time, markets will consolidate, as they prepare for either an extension of the initial move, or a change of direction.
Looking at the chart, the 14-day RSI continues to track below a key resistance level at 44, which seems to be the main hurdle preventing a resurgence of BTC bulls.
If recent sentiment continues, we may see some further declines back towards $39,600 prior to any upcoming extended gains.
ETH was also mainly unmoved during Saturday’s session, as the world’s second-largest cryptocurrency was tracking close to its price support.
Following an earlier low of $3,001.12, ETH/USD only marginally rose, hitting a peak of $3,046.20 as of writing.
This peak is around 0.49% higher than yesterday’s low, and sees price once again fail to make any significant gains following losses during the week.
Since the beginning of the year, the price of ETH traded close to this $3,000 support level on four occasions, with bulls typically pushing prices higher.
On the occasions when price has traded around current level, we typically see no more than two days of consolidation, prior to a rally.
As of writing, prices are currently seeing the second day of consolidation, which could potentially tempt bulls to look at entries on Sunday.
Could we see history repeat itself this weekend, to the benefit of ETH bulls? Leave your thoughts in the comments below.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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