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Technical analysis

Crypto market recovery: Ethereum surges 13% overnight.

Sanmi Adeagbo | Feb. 18, 2019
Crypto market recovery: Ethereum surges 13% overnight.

The crypto market continues its recovery overnight as majors and minors surge significantly. Ethereum hit $140 from $121. Will the recovery continue.

February 18, 2019 | AtoZ Markets -The cryptocurrency market has resumed the upside move this week after a very quiet one last week. Less than two weeks ago, prices surge after slow moves in the previous two weeks. On 8th February,a new wave of rallies started and has now continued this week after many major and minor cryptos gained significantly. Ethereum hit $142 and has now gained about 70% from its 2018 low of $82. Though prices are still below the year highs but the recovery has been positive so far this week.

After prices dropped again in November 2018, many cryptos hit their lowest lows for the year. At that time, the market ended the year in a gloomy mood. Though there were signs of recovery in December 2018 but the performance early this year eroded much of the profits recorded. A month dip, between early January and early February has forced many to ask questions whether the market would really recover from the big sell-off. However, there has been change of sentiments of late with the bulls winning more to its side and that will most likely increase if the current surge persists in the coming weeks.

Ethereum is the biggest gainer in the last 24 hours. After the surge yesterday, Bitcoin gained less than 4% from $3580 to $3700. Ripple gained 5% from $0.3 to $0.32 while Litecoin gained 2.8% from $44 to $46. Most others gained 5% and below. Ethereum, however rises 13% in the same period to complete a 70% surge from last year low.

Ethereum technical analysis: will there be complete recovery?

The current rally in the market was expected from Elliott wave theory perspective. After last December 2018 low prices, the market rallied in 5-waves until 5th January, when a correction of the rally took prices lower until 5th February. At the end of the correction downside, price was expected to rally above $161 top. The chart below was used in the last update.

A 5-wave rally above 161 was imminent after a minor wave ii dip. But price wen sideways instead before hitting $142 yesterday. The chart below shows the new update.

Price seems to be heading to 190 or more. A dip might happen in the rest of week but the medium-term sentiments still point upside unless a fast drop below 100 happens. The road to full recovery is getting clearer. Price might lead to a full recovery if the rally from 80 results in an impulse wave which would lead far 200 to 350 and higher. Otherwise, a corrective zigzag pattern might complete at 190-200 resulting in another fall that could lead to a new low below 80.

Will Ethereum go independent of Bitcoin?

Meanwhile some market analysts believe Ethereum would perform better than Bitcoin no matter what happens to the latter. DonAlt, a renowned crypto technical analysts is one of those who believe in this possibility. He said:

I'm inccredibly bullish on ETH for the few weeks. I'd get a cardboard Vitalik cutout if I could, just so I have it by my side 24/7. No matter what BTC does, ETH will outperform the market in my mind. I'll use dips as giant buying opportunities.

The move upside expected to be gradual. We might not see such big surges as there were in 2017 or the previous bullish trends. A gradual rallies-to-dips-to-rallies is more probable. The barrier around 190-200 will be the pivot between a zigzag pattern leading to another crash or an impulse wave leading a much higher recovery, should be watched carefully. DonAlt also agrees with this. He said further:

Well, this is a proper moon. Not a big liquid spike but rather a noce controlled walk up. Didn't expect quite this much action into the weekend but I'm not complaining. ETH as the top gainer on BitMex. Right at resistance here - will be interesting if it can break through.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.