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Ethereum has been under aggressive selling pressure for an extended period of time, leading to an overall market decline. The latest data shows that ETH has stalled significantly, with its market cap decreasing by billions of dollars.
The price of ETH is currently $2,314, marking a significant drop from its peak value that erases over $32 billion in market value in a relatively short period of time. Incessant sales activity, especially by large holders, appears to be the main cause of Ethereum’s difficulties. As a result of the chain reaction caused by this selling pressure, this asset is now in a dangerous situation.
ETH/USDT chart by TradingView
Unfortunately, the downtrend is increasing and the near-term market outlook for Ethereum is not positive. The breakdown of key technical levels is fueling bearish sentiment among investors. The $2,300 mark is one of the most important price levels to monitor.
This barrier, which could result in even greater losses if breached, is where Ethereum is dangerously close. The next major support lies below this at around $2,150, which is also the location of the previous consolidation zone at the beginning of the year. If Ethereum breaks through these levels, we could see further decline in price, with ETH approaching below $2,000.
Bitcoin’s strange position
After 200 days of low volatility and low liquidity, Bitcoin is currently stuck in what many are calling an “stalemate.” Trader dissatisfaction with Bitcoin’s performance in 2024 stems from the fact that it has not been able to break out of a downward trend despite sporadic price spikes.
The chart clearly shows a lack of upward momentum as BTC is unable to decisively move above a significant resistance level. Bitcoin still needs to break through the $63,000 price barrier for a meaningful rebound. On the downside, the support level will be tested frequently, so a break below the $59,000 support level could trigger a more severe correction. This prolonged period of low volatility is evident in both price movements and reduced exchange liquidity.
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As a result of many traders exiting, the market has seen reduced volume and a lack of decisive action. As a result, Bitcoin’s ability to appreciate in value has been severely hampered, creating a difficult trading environment. Currently, Bitcoin appears to be fluctuating between key levels of support and resistance.
This downward trend suggests that Bitcoin is likely to incur further losses unless there is a noticeable improvement in volume and market sentiment. The $63,000 resistance and $59,000 support should be watched closely by traders as a breakout in either direction could signal the direction of Bitcoin’s next significant move. But without a clear trigger, Bitcoin is likely to continue this cycle of stagnation and show little hope for the foreseeable future.
Abnormal movements are seen in XRP
Both bulls and bears are in disbelief after XRP delivered its most volatile and chaotic performance in the past seven days. Initially, a symmetrical triangular pattern (a common integrated structure) resulted in a directionally distinct breakout. However, what happened next likely resulted in heavy losses for both parties and caught many traders off guard.
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When price first broke out of the triangle high, many thought a bullish trend had begun. Bullish traders who were hoping for a long-term rally were harmed by a false breakout scenario resulting from the rapid retracement of this breakout. But the strange price fluctuations didn’t stop there.
XRP has continued its decline and is now trading well below its initial breakout level, rather than flattening or consolidating again. There were probably a lot of liquidations as a result of this volatile price action on both bears. Both bears were surprised by the initial false breakout and the bulls were surprised by the excessive leverage hoping to move higher.
As a result, XRP is currently below a key moving average, indicating that the asset is likely to continue declining unless significant buying pressure materializes. At the moment, the $0.55 support level and the $0.50 psychological barrier are the two key price levels to watch for XRP.
If XRP falls below the $0.50 threshold, further downside pressure may occur as it would indicate an inability to maintain the key support level. However, after this week’s wild swings, XRP’s ability to regain $0.55 could signal a reversal, or at least some stabilization. Given its volatile price fluctuations, XRP remains a risky asset to trade at this time, and investors should exercise caution while XRP passes through this turbulent phase.
