Read MoreWelcome back to the cryptowatch channel everyone my name is josh and ethereum is still continuing with this break to the downside against bitcoin and it's now confirmed a large scale downtrend for ethereum versus bitcoin on this three-day time frame which is why we've seen ethereum against the us dollar move to the downside even though bitcoin.
Against the us dollar has held its support this will be an important video to watch all the way to the end definitely stick around just starting off on the daily ethereum to yours dollar chance and over the past one day we've seen a break to the downside in this uptrend in the daily rsi that we've been forming over the.
Past two weeks and so technically speaking this is now invalidated that bullish divergence which basically means we could see some more bearish momentum resume in this trend because for the last couple weeks while ethereum was playing out these bullish diversions we saw a lack in bearish momentum we basically just chopped around sideways.
But with that being said if ethereum can close today's daily candle at around 1800 approximately or anything above that and as long as it's still below this previous low coming into play at around 1900 then technically speaking we could form another bullish divergence here because obviously we're seeing another lower low in the price action.
But we could form a higher low in the rso if we see the daily candle close around 1800 approximately and speaking about the rsi taking a look at the weekly ethereum rsi which is right now at an extremely low level in fact the weekly ethereum rsi has only gotten this low just one other time in ethereum's entire price history which was back at.
The end of the 2018 bear market entering into early 2019. even if you're looking at this crash that we saw during 2016 or the massive march 2020 crash the weekly rsi didn't even make it down towards the values that we're sitting at right now so this is definitely something to keep in mind and with that being said we can still head a little bit lower obviously.
We're not in oversold territories just yet for example back in 2018 we did enter into oversold territories and if you actually look at what happened towards the end of the 2018 bear market when the weekly rsi was down towards this line right here at around 32-33 at that stage the worst was already behind us but we still had one.
More drop ahead of us so basically the bottom of the bear market was pretty close relatively speaking but like i said it wasn't until the weekly rsi entered slightly into oversold territories that was when the price of ethereum bottoms out for the 2018 bear market now it is important to mention that just because something happens in.
The past it doesn't guarantee anything's going to play out the exact same again in the future but it's still worth looking at what happened in the past to give us a rough idea of what we could expect moving forward in the future even though it might not be the exact same thing and if you zoom all the way into the four hour ethereum chance obviously.
The price of ethereum over the past one day has confirmed a break below this support at around 1900 and as of right now at the time of recording in this video that level is now acting as resistance which is actually a bearish signal for ethereum the fact that we got a rejection from that previous level of supports so in order for the price of.
Ethereum to flip somewhat bullish again we need to break above that 1 900 level first which right now hasn't happened and as for other levels of supports obviously i've been mentioning for quite a while now on the channel that i expect strong support at around 1700 and so far at the time of recording this video the recent ethereum job has essentially.
Revisited that 1700 load that we set a couple weeks ago and if you're looking back during may june and july last year we saw a lot of support at around 1700 per ethereum so one thousand seven hundred is still the important support level for ethereum that i am paying attention to now heading over to the ethereum versus bitcoin chart on the.
Three day time frame obviously we've already seen the breakout to the downside which i've been talking about pretty much every single day over the past one week but with the recent drop for ethereum vs bitcoin we've officially confirmed a lower low on the three day time frame which means ethereum versus bitcoin or the larger time frames like.
The three-day chart is officially in a downtrend because we already have lower highs and now we have lower lows and something else that i've also been talking about almost every day over the past one to two weeks for ethereum vs bitcoin is my strategy around ethereum versus bitcoin which has been to move some of my ethereum into bitcoin to.
Avoid the recent drop and any further drops for ethereum versus bitcoin now that we're officially in a downtrend and once again i did that the moment we broke below this previous low right around here i moved some of my ethereum into bitcoin so i'm still holding some ethereum but not as much ethereum as what i was holding because right now.
Simply based on this chart and also the bitcoin dominance chart it simply makes sense to be heavier in bitcoin compared to ethereum or any other alt queen out there and once again this should be nothing new for the subscribers out there because i've been talking about all of this pretty much every day over the past couple weeks and in fact the.
Rise in the bitcoin dominance i've been talking about ever since last month you can even go back and check my videos if you want but obviously what is going on here in the bitcoin dominance is a massive breakout so the upside above this significant line of resistance and this simply means bitcoin is gaining market share over the total crypto.
Market which means old coins are losing market share so old coins on average are underperforming against bitcoin which is why it doesn't make sense to be heavy in alt coins right now and it's possible the bitcoin dominance could find some resistance around these previous highs which are coming in at around 47 bitcoin dominance and around 48 to 49 bitcoin.
Dominance and at the time of recording this video we're just above 46 bitcoin dominance but as of right now my crypto investing strategy remains unchanged i'm simply heavier into bitcoin compared to ethereum or any other alt coin out there and of course i'll be sure to keep you updated if anything changes in these videos and in real time over on my.
Twitter and make sure to check out one of these videos popping up right here on your screen if you want to know how to keep making money in crypto even if prices are going down but anyway that is everything that i have to say for today i really hope you enjoyed and i'll see you all in the next video