Ethereum extended its decline and it even broke the $2,000 support against the US Dollar. ETH price is now recovering and it might correct higher towards $2,150.
Ethereum extended its decline below the $2,050 and $2,000 support levels.
The price is now trading well below $2,200 and the 100 hourly simple moving average.
There was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could recover above the $2,000 level, but the bears might protect the $2,200 zone.
Ethereum Price Turns Red
Ethereum remained in a bearish zone below the $2,300 level, similar to bitcoin. ETH even traded below the $2,200 and $2,100 support levels to move further into a bearish zone.
There was also a break below the $2,000 support zone and a close below the 100 hourly simple moving average. A low was formed near $1,847 and the price is now recovering higher. Ether price was able to climb above the $1,920 and $1,950 levels.
There was a clear break above the 23.6% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. Moreover, there was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD.
The pair is now showing a few positive signs above $1,950. An immediate resistance on the upside is near the $2,000 level. The first major resistance on the upside is near the $2,065 level.
It is close to the 50% Fib retracement level of the of the recent decline from the $2,283 high to $1,847 low. The main resistance is now forming near the $2,150 level and the 100 hourly simple moving average.
More Losses in ETH?
If Ethereum fails to clear the $2,065 and $2,150 resistance levels, it could continue to move down. An initial support on the downside is near the $1,920 level.
The main breakdown support is now forming near the $1,850 level. A downside break below the recent low and the $1,850 support level may possibly call for more losses. In the stated case, ether price is likely to decline towards $1,720 in the near term.
Hourly MACD – The MACD for ETH/USD is slowly recovering in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
The cryptocurrency market is down by more than 20% in the last 7 days. The overall market cap of digital currencies lost nearly $300 billion within a single week. Large crypto investors have started adjusting their investment portfolios amid the recent bearish market sentiment.
According to the latest digital asset fund flows report published by CoinShares, the cryptocurrency investment products saw outflows worth $79 million last week, a third consecutive week of digital asset outflows. CoinShares mentioned that the recent weekly numbers indicate the longest bearish sentiment in crypto investment products since 2018.
Outflows were mainly focused on Bitcoin as more than $89 million worth of investment left BTC-related products during the last week. The world’s largest cryptocurrency saw its sixth consecutive week of outflows.
“Bitcoin outflows now total US$487m this year representing 1.6% of assets under management. Sentiment remains mixed as evidenced by some providers seeing inflows while others continue to see outflows. Ethereum, the world’s second-largest cryptocurrency, saw minor outflows of US$1.9m, combined with outflows from the previous week now totaling US$14.6m. As a percentage of assets under management, it represents 0.14%, implying most of the negative sentiment has been focused on Bitcoin,” CoinShares mentioned in the report.
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During the market crash of 2018, the cryptocurrency investment products saw outflows for seven consecutive weeks.
Ethereum and Cryptocurrency Market
ETH remained the worst-performing cryptocurrency among the top 5 during the last 7 days as its price plunged approximately 26%. CoinShares highlighted the impact of ETH’s price action on its trading volume. “Weekly trading volumes in Ethereum investment products have fallen by 80% since the May highs. Bucking the trend last week were multi-asset investment products which saw inflows of US$10m last week. Year-to-date net inflows now total US$351m, representing 16% of assets under management,” CoinShares added.
The total market cap of digital currencies currently stands at around $1.3 trillion, down by more than 7% in the last 24 hours.
Cryptocurrency assets are facing a tough challenge these days after the latest negative market sentiment. The total market cap of digital currencies dropped below $1.4 trillion on Monday.
According to the latest data published by Coinmarketcap, Bitcoin, the world’s largest cryptocurrency, crashed below $34,000 today. As of writing, the total market of BTC stands at around $640 billion.
The cryptocurrency market has been in a downtrend for the last five weeks. On 12 May 2021, the overall value of digital assets topped $2.6 trillion, the highest level on record. The market cap dropped significantly in the following weeks and touched a low of approximately $1.25 trillion on 24 May.
There were several reasons behind the latest sell-off in the cryptocurrency market. Analysts termed the recent crypto ban announcement by China as the main driver. Elon Musk, CEO of Tesla, also criticized Bitcoin for its environmental impact during the last few weeks.
“The dominant driver of Bitcoin right now is the crackdown on mining & trading in China that began in May. This created a forced & rushed exodus of Chinese capital & mining from the Bitcoin network – a tragedy for China and a benefit for the Rest of the World over the long term,” Michael Saylor, CEO of MicroStrategy, said in a Tweet on Saturday.
According to the recent data by crypto analytics firm Santiment, cryptocurrency whale accounts are still accumulating digital currencies in large amounts despite the latest sell-off. “Bitcoin has dropped to $34,000, revisiting levels last seen June 12th. Whale holders (at least 1,000 BTC addresses) continue to show a pattern of accumulation, and mid-tier holders (10-1,000 BTC) aren’t flinching,” Santiment highlighted.
The recent drop in the cryptocurrency market has caused a major dip in the total value of Grayscale’s digital assets under management (AUM). The US-based asset management firm now has nearly $34 billion worth of crypto AUM, a significant drop from over $50 billion in May 2021.
Bitcoin is the largest cryptocurrency by market capital, but it has shortcomings that have harmed its reputation and status, says economics professor.
Bitcoin has arguably been the best performing digital asset in the last few years. The crypto is, however, far from being ideal, according to Eswar Prasad, an economics professor at Cornell University. In a Thursday interview with CNBC, Prasad argued that Bitcoin has three major shortcomings that have given its competitors the edge.
The Cornell professor elaborated that while Bitcoin is the most popular cryptocurrency, it isn’t exactly anonymous as many paint it to be. Just recently, the US Federal Bureau of Investigation announced it had managed to recover $2.3 million worth of Bitcoin that had been paid in a ransomware exploit involving Colonial Pipe. The bureau revealed that the operation was a success because it could trace the crypto wallet used by the hacking group.
Prasad explained that Bitcoin was developed to ‘provide pseudonymity,’ but it has failed to live up to that. He added that it was possible to track it, especially when used to purchase goods and services. The Cornell economist stated that cryptocurrencies like Monero and Zcash had addressed the flaw by offering more anonymity.
The Indian economist also found fault with the mining of the cryptocurrency as it negatively impacts the environment. He described the energy used to validate transactions on the network as bad for the environment. This is not in the least surprising as several individuals and institutions share similar views. Perhaps the biggest standout is EV maker Tesla which stopped accepting Bitcoin payments last month.
The Musk-led company has since confirmed that it may bring back the option only if crypto goes green. Prasad noted that Bitcoin’s biggest alternative, Ether, was doing slightly better in this regard by developing a new proof of stake mechanism that’d reportedly consume much less energy. However, Prasad was keen to point out that it’s yet to happen, but it will come with an array of benefits including faster and cheaper transactions when it does.
The third Bitcoin shortcoming highlighted by the former head of Financial Studies Division at IMF’s China division was its inadequacy as a medium of exchange. Prasad noted that the cryptocurrency was created to also serve as a digital currency, but it had seen little success in that respect.
He averred that the cryptocurrency is ‘slow and cumbersome’ when it comes to settling payments. Prasad additionally pointed out that its market is prone to wide fluctuations making it unsuitable as a medium of exchange. The economist believes that the cryptocurrency has evolved to become a speculative asset for many and no longer finds use as a currency alternative.
Ether’s recoil was a significant move following last week’s support at $2,400. On the other hand, the international money transfer token Ripple continues with the consolidation between $0.8 and $0.9.
Some selected altcoins are no longer gasping for air in the wake of the previous week’s selloff. For instance, Polkadot price spiked over 15% to exchange hands around $26 before correcting to $24, while MATIC price spiked to $1.7 after adding over 15% to its value, according to the data by CoinGecko. Other tokens performing incredibly well include Amp (up 34%), Klaytn (up 12%), and Safemoon (up 15%).
As the week progresses, various crypto assets are expected to extend the bullish action. The list is extensive, but this article draws attention to Ethereum (ETH), Ripple (XRP), Aave (AAVE), and Binance Coin (BNB).
Ethereum Price Readies For Colossal 40% Upswing to $4,000
Ethereum price has lifted above several key levels since the beginning of the week, including the 50-day Simple Moving Average (SMA) on the four-hour chart, the 100 SMA, and $2,600. However, seller congestion at $2,650 curtailed the uptrend.
Meanwhile, the largest altcoin trades slightly below $2,600 ahead of a potentially massive breakout from the ascending triangle. This technical pattern is regarded as bullish in technical analysis. It can function as a continuation and a bullish reversal pattern.
Two trend lines characterize the ascending triangle, linking the relatively equal peaks and the higher lows. As the lines meet, consolidation is experienced. Finally, the Ethereum price cracks the horizontal (x-axis) resistance.
ETH/USD 4-four Chart
Realize that triangles usually have exact breakout targets measured from the patterns’ highest to lowest points. Therefore, ETH could be heading toward a 40% upswing to price levels of around $4,000.
Ethereum’s uptrend has been validated by relatively weak on-chain resistance, as the IntoTheBlock’s IOMAP model highlights. This transaction model shines a light on the region running from $2,590 to $2,667. Here, nearly 277,500 addresses previously purchased 3.54 million ETH. With minor boosts, Ethereum’s price could jump above this zone for gains heading toward $3,000.
Ethereum IOMAP Model
On the downside, Ether sits on top of a massive support area running from $2,430 to $2,508. Here, around 458,000 addresses previously bundled up 10.5 million ETH. Note that cracking through this zone will not be easy for bears; hence the least resistance path is upward.
Ripple Price On The Periphery A Technical Explosion To $1.34
Ripple price is stuck in consolidation at the time of writing. Support at $0.8 is robust, preventing losses from extending to $0.65 (May’s support). On the upside, $0.9 hinders price action north.
Meanwhile, Ripple price dodders at $0.88 and is within the confines of a symmetrical triangle pattern. As the two trend lines forming the triangle converge, a consolidation period comes into the picture.
However, a breakout soon approaches either above or below the symmetrical triangle. A break above the upper trend line marks an uptrend while striking beneath the lower trendline is a bearish signal.
XRP/USD 4-hour Chart
If Ripple price closes the day above the 100 SMA, a breakout to $1.34 will likely come into play. Besides, massive buy orders would be triggered if Ripple reclaims the ground above $1.
The Moving Average Convergence Divergence (MACD) indicator adds credence to the bullish outlook after moving into the positive region. Besides, the MACD line crossing above the signal paves for more buyers to join the market.
How Aave Price Could Quickly rise to $440
Aave price uptrend from June’s lowest support at $265 failed to overcome the seller congestion at the 100 SMA on the four-hour chart this week, leading to a correction toward $300. Hence, the decentralized finance (Defi) token teeters at $315 at the time of writing.
The rejection at the 100 SMA notwithstanding, the SuperTrend indicator flashed a buy signal on Monday. This is a chart overlay tool resembling a moving average only that it considers the asset’s volatility.
A buy signal implies that trades will be contemplating taking long positions, supporting the bullish price action in the near term. Besides, the MACD has a bullish Impulse, adding credibility to the impending upswing.
AAVE/USD Four-hour Chart
The IOMAP on-chain model reveals that Aave price has a smooth path to the seller congestion in the region between $433 and $471. Here, 6,400 addresses previously bought 2.48 million AAVE. If this hurdle comes down, we can expect Aave price to soar beyond $500.
Aave IOMAP Model
On the flip side, the Defi token sits on top of immense support areas, as highlighted by the IOMAP. The initial anchor zone lies between $221 and $270, whereby 1,900 addresses previously scooped up 3 million AAVE. It would be a daunting task for sellers to make their way through this region in the short term.
Binance Coin Price Needs This Key Support To Rally To $440
Binance Coin, the native coin of the crypto trading platform Binance exchange, is hunting for support at the 100 SMA on the four-hour chart. If this buyer congestion is lost, the last resort would be the 50 SMA in the same timeframe.
Note that the MACD has a massive bullish outlook based on the move above the zero line. Additionally, the MACD line (blue) recently crossed above the signal line, compelling more buyers to reenter the market. Sustaining the overall technical picture would bolster Binance Coin price above the critical resistance at the 200 SMA.
BNB/USD 4-hour Chart
A four-hour close above the 200 SMA is needed to validate the upswing above $400. Finally, trading above this level is bound to trigger more buy orders as investors speculate an upswing past $440 and $500, respectively.
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