Ethereum [ETH] could be set for another round of explosion, only if…

Chris Burniske city Santiment Ethereum ETH BTC Bitcoin

06.03.2023 - 22:07

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ambcrypto.com:

The first few days of March have failed to give Ethereum [ETH] holders a much-desired breather. Despite the reality of despair, any hope for respite could depend on one condition, according to Chris Burniske.

The ex-crypto investment head at ARKInvest opined that ETH, alongside Bitcoin [BTC] , would only recover if the dollar and interest rates drop.

<p lang=«en» dir=«ltr» xml:lang=«en»>For much of February the dollar and rates went higher, while crypto hung in there. If the former two start to drift lower, $BTC could push through $25K, and if $ETHBTC pushes alongside that we could get another round of fireworks.

— Chris Burniske (@cburniske) March 5, 2023

Realistic or not, here’s ETH’s market cap in BTC’s terms

Recall that the first two months of the year brought glaring greens to the market, with the top two cryptocurrencies earning gains for their holders.

In addition, the Fed rates increase in February had initially triggered reds in the market. But ETH, led by BTC ensured that the drawdown only lasted a few hours. So, does the ETH technical outlook appear encouraging yet?

Well, the ETH/USD daily chart showed that the asset volatility was exiting its long-standing contraction status at press time.

Meanwhile, the lower part of the Bollinger Bands (BB) which measures an asset’s volatile condition was at par with the ETH price. Since the bands did not squeeze, this status indicates that ETH was oversold and had fewer chances of a significant breakout.

Source: TradingView

However, the Directional Movement Index (DMI) suggested that the altcoin might not be ready for a rally, and the condition mentioned above could be instrumental.

This was because the -DMI (red) positioned higher than the +DMI (green) at 20.71