Markets
A reversal still possible, Ethereum (ETH) meets a first solid support
Arman Shirinian
The current state of the market raises serious questions and many concerns
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XRP wasn’t the strongest asset on the market this year, but despite that, it doesn’t face any of the problems we see on Ethereum and Bitcoin. XRP managed to avoid problems at $0.48. However, the lack of volatility could end up being a negative factor when the market downturn begins.
Compared to its peers, XRP has demonstrated exceptional stability over the past few months. During the day, XRP was able to maintain its price range relatively stable, while Ethereum and Bitcoin saw significant fluctuations.
Its consistent trading volume and the general attitude of the XRP community are two of the reasons for its stability. At the $0.48 support level, XRP resilience is one of its most important current characteristics. This level supported possible upward movements by acting as a base and preventing further declines. The consistency of XRP’s price suggests that there is an investor base that is engaged and optimistic about the company’s future.
But this stability can also have a drawback. Assets with minimal movement can sometimes go unnoticed by traders looking for quick profits in a highly volatile market. If XRP continues to trade in a small range, it could lose the speculative interest that often leads to notable price increases in other cryptocurrencies.
This lack of volatility for XRP could be a plus or a minus as the market as a whole awaits a possible reversal. On the one hand, investors who are risk averse and looking for a safe haven may be attracted by its stability. However, XRP may struggle to keep pace with more volatile assets whose value may see large increases in the event of a significant change in market sentiment.
The critical blow of Bitcoin
Despite the fact that Bitcoin fallen below the $65,000 price threshold, the top cryptocurrency could still show us a substantial reversal in the foreseeable future. The next major support for the asset lies at around $57,000, but while we see an increase in buying support right now, there is nothing stopping BTC from reaching $70,000.
A number of factors, including increased selling pressure from miners and a shift in overall market sentiment toward caution, can be attributed to the recent Bitcoin price decline.
Current technical arrangements suggest that a rebound could be possible. Critical support was provided by the 100-day moving average (orange line) at around $64,000. How the Bitcoin price moves at this point will be crucial in predicting its short-term development. course.
The distribution of liquidity must also be taken into account. The chart below shows notable liquidity above the $70,000 mark. This implies that if Bitcoin is able to gain momentum, there is a significant amount of liquidity just waiting to be released, which could lead to a sharp price rise. Market participants are advised to monitor the quantity of transactions.
An increase in trading volume combined with an improvement in the RSI could indicate the start of a reversal. Additionally, macroeconomic variables and encouraging reports on Bitcoin acceptance or regulatory clarity can provide the necessary impetus for a price increase.
The collateral damage of Ethereum
Ethereum did not avoid the blow that Bitcoin suffered. The second largest cryptocurrency on the market fell to $3,300, which is not the lowest level for Ether we have seen this month. Only a week ago, ETH already tested this support level, which could be a sign of an upcoming reversal in the future.
The recent decline of Ethereum is part of a broader market trend where there is increased pressure on sellers of major cryptocurrencies. Nonetheless, ETH’s current position at the $3,300 support level is very important. Historically, this level has served as a major support providing a solid foundation for future upward movement.
Ethereum appears to be ready for a reversal based on technical indicators. Currently, the 100-day moving average functions as a crucial support level, and the daily chart’s Relative Strength Index is approaching oversold values.
The increase in volume may indicate that buyers are entering the market at this support level, which could push the price higher. Ethereum could attract more buying interest and pave the way for a potential comeback if it can hold above this crucial support.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.