Ethereum seemed set to break several barriers towards the $5,000 price milestone which has been anticipated for long.
However, a crypto analyst on 8 October said the hope of pushing through to this level has been invalidated with the failure to break through a key resistance.
This delays the chance of reaching this price milestone which could open the door to higher prices in coming days and weeks.
Ethereum rejected
Ethereum’s rise was truncated when it was rejected at the $4,700 level. Consequently, the price retraced back to $4,463 and the analyst expects it to go a little lower still before another attempt at rising to $5,000.
Similarly, another analyst who anticipated the invalidation said $4,200 would be a good place to re-enter the market in preparation for the $5,000 rally.
It is worth noting that Ethereum’s rally was thwarted mainly due to Bitcoin’s correction yesterday that brought the price down from the new all-time high of $126,000 to just over $121,000.
Ethereum has always followed Bitcoin’s price action, except at the point when an altcoin rally is around the corner.
This invalidation suggests that the altcoin season isn’t around yet, and Ethereum may wait a little longer to reach the price that its holders eagerly expect.
What of smaller caps?
Ethereum’s pullback, mostly caused by Bitcoin, has led to smaller altcoins pulling back as well. Among the top ten, only BNB has distinguished itself with distinct strength and continues to rise regardless.
With the current trend, altcoins can only wait for Bitcoin and Ethereum to recover and set the market on the path to recovery.
Meanwhile, altcoin season is also invariably delayed since Bitcoin has to reach its top, followed by Ethereum before a genuine altcoin rally can kick in.
What do you think?
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