Ethereum (ETH) and XRP, the second and sixth largest cryptocurrencies by market cap respectively, are approaching horizontal resistance, according to a tweet from crypto analytics tool 100eyes Crypto Scanner.
Horizontal resistance, a key term in technical analysis, is a price level that a cryptocurrency or other asset has trouble surpassing. It often signifies a price point at which an influx of supply (sell orders) is strong enough to prevent the price from advancing further.Ethereum (ETH), the second-largest cryptocurrency, boasts a market cap of approximately $229 billion and a 4% weekly gain. XRP, known for its affiliation with Ripple, has a market cap of around $27 billion, but notably outperforms both Bitcoin (BTC) and ETH with a 12.8% increase over the past seven days, according to data from CoinGecko. At the time of writing, Ethereum is trading at $1,909.17 and XRP at $0.532.
These figures show bullish momentum, but the looming horizontal resistance levels may soon test the strength of these upward trends.
In technical analysis, horizontal resistance levels often act as psychological price barriers for traders. These points typically reflect a high level of selling pressure where traders decide to sell off their holdings to capitalize on price peaks.
The impact of hitting these resistance levels can vary, potentially resulting in a price reversal or consolidation.