Ethereum
Ethereum (ETH) in Critical Condition, Here’s Why Bitcoin (BTC) Can’t Reach $70,000, Will XRP Hit All-Time Low? By U.Today
U.Today – Even though it was starting to gain traction in the market, the severe and ongoing consolidation that produced virtually nothing and only pulled ETH to around $3,800 was an important signal indicating performance potential futures of the asset.
Despite its strong initial momentum, ETH’s price action surprised many traders. After hitting resistance at around $3,800, Ethereum entered a consolidation phase. The current decline we have observed, which is often a sign of market indecision, was anticipated in this case by a sideways movement. Over the past few days, the price of Ethereum has dropped significantly, approaching $3,500.
The market has been bullish overall, so many people were surprised by the sudden drop. There are several possible reasons for this unexpected behavior. The first liquidity problems could be crucial. Additionally, macroeconomic factors and investor sentiment are still important. Ethereum’s performance may have been affected by recent global financial trends, regulatory news, or even market sell-offs. It is also essential to keep in mind that fluctuations (such as falling below $70,000) frequently impact the entire cryptocurrency market, including Ethereum.
Technical indicators show that there has been a significant sell-off of ETH over a short period of time. The return of buyers to the market may indicate potential for expansion. Moving averages also show another worrying trend: short-term MAs are moving below longer-term MAs, which is usually a bearish signal. Despite the recent slowdown, Ethereum’s fundamentals remain strong.
Bitcoin is in trouble
Bitcoin is struggling to cross the $70,000 threshold for several reasons. The significant lack of purchasing power is one of the main causes. The price of Bitcoin has already reached all-time highs due to large capital inflows.
A decreasing number of new buyers are nevertheless willing to make these high-level investments, depending on the state of the market. The lack of buying interest makes it difficult for Bitcoin to break above the psychological barrier of $70,000.
Change in institutional behavior is another important element. Institutions are now diverting money from Bitcoin ETFs despite the fact that they played a crucial role in Bitcoin’s early rallies. This shift is partly the result of the search for better returns in alternative asset classes or new developments in the cryptocurrency sector.
Bitcoin’s potential price is weakened by diminishing institutional support, as a significant portion of the buying pressure that drove prices higher came from these large-scale investors.
Additionally, the strong fundamental drivers that have historically sparked huge bull runs are currently absent from Bitcoin. While the NFT craze played a similar role in 2021, the ICO boom in 2017 propelled Bitcoin to all-time highs. There is currently no such trend or invention that is propelling investor capital and enthusiasm for Bitcoin on a large scale.
Bitcoin’s difficulties are also reflected in technical indicators. It appears that neither overbought nor oversold conditions exist as the Relative Strength Index (RSI) is hovering around neutral. This neutral RSI adds to the general feeling of indecision and uncertainty in the market, further preventing any significant price movement.
in trouble
The current state of XRP is truly problematic. The asset lost many key support levels like the 50 EMA, psychological levels at $0.5 and others. Such performance certainly puts XRP on the list of top performing assets. However, the only question now is: will it hit the yearly low of $0.44?
XRP has steadily lost value over the past few weeks due to a downtrend. The first real warning signal appeared when the 50-day EMA disappeared. After that, XRP fell below the critical psychological support level of $0.5, represented by the orange line on the 100-day EMA, further deteriorating its technical outlook.
The yearly low of $0.44 is the next important support level for XRP. The probability of reaching this level seems to be growing given the state of the market and technical indicators. There is a long-term downtrend indicated by the 200-day EMA, which is still significantly above the current price.
The lack of significant purchasing power is one of the main causes of the fall of XRP. The asset struggles to maintain its value, let alone increase it in the absence of substantial interest from buyers. Due to investor caution sparked by macroeconomic uncertainties, overall cryptocurrency market conditions are currently not very favorable.