Advertisement
AD

Main navigation

Ethereum (ETH) in Critical State, Here's Why Bitcoin (BTC) Can't Reach $70,000, Will XRP Reach All-Time Low?

Advertisement
Thu, 13/06/2024 - 0:30
Ethereum (ETH) in Critical State, Here's Why Bitcoin (BTC) Can't Reach $70,000, Will XRP Reach All-Time Low?
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Contents
Advertisement

Although Ethereum was beginning to gain traction on the market, the severe and ongoing consolidation that produced virtually nothing and only pulled ETH at about $3,800 was an important signal pointing to the asset's potential future performance. 

Despite its early strong momentum, the price action of ETH has surprised a lot of traders. After hitting resistance at about $3,800, Ethereum entered a consolidation phase. The current decline that we have observed, which is frequently an indication of market indecision, was foreseen in this instance by sideways movement. Over the past few days, Ethereum's price has dropped significantly, approaching $3,500. 

Article image
ETH/USD Chart by TradingView

The market had been feeling bullish overall, so many people were surprised by this sudden decline. There are several possible reasons for this unforeseen behavior. Initial liquidity issues could be crucial. Furthermore, macroeconomic factors and investor sentiment are always important. Ethereum's performance may have been impacted by recent global financial trends, regulatory news or even bigger sell-offs on the market. It is also critical to keep in mind that fluctuations in Bitcoin (such as the decline below $70,000) frequently have an impact on the entire cryptocurrency market, including Ethereum

Technical indicators show that there was a significant sell-off of ETH in a short period of time. Reentry by buyers onto the market may indicate potential for expansion. Moving averages also show another concerning pattern: the shorter-term MAs crossing below the longer-term MAs, which is typically a bearish signal. Despite the recent downturn, Ethereum's fundamentals remain strong.

Bitcoin is struggling

Bitcoin is struggling to cross the $70,000 threshold for a number of reasons. The significant lack of purchasing power is one of the main causes. Bitcoin's price previously reached all-time highs due to significant capital inflows.

A decreasing number of new purchasers are nevertheless willing to make these high-level investments, according to the state of the market. The lack of buying interest is making it difficult for Bitcoin to surpass the psychological $70,000 barrier

The change in institutional behavior is another important component. Institutions are now shifting money away from Bitcoin ETFs despite the fact that they were crucial to Bitcoin's earlier rallies. This change is partially the result of people looking for better returns in alternative asset classes or new developments in the cryptocurrency industry. 

Related

The potential price of Bitcoin is weakened by diminished institutional support because a significant portion of the buying pressure that raised prices came from these large-scale investors. 

Furthermore, strong fundamental drivers that have historically sparked enormous bull runs are absent from Bitcoin at the moment. While the NFT craze played a similar role in 2021, the ICO boom in 2017 propelled Bitcoin to previously-unheard-of heights. There is currently no trend or invention like this propelling investor capital and enthusiasm toward Bitcoin on a large scale.  

The struggles of Bitcoin are also reflected in technical indicators. It appears that neither overbought nor oversold conditions exist as the Relative Strength Index (RSI) has been circling around neutral. This neutral RSI adds to the general sense of indecisiveness and uncertainty on the market, further impeding any meaningful price movement.

XRP in trouble

XRP's current state is really problematic. The asset has lost numerous key support levels like the 50 EMA, psychological levels at $0.5 and others. Such performance certainly puts XRP down on the list of better-performing assets. However, the only question now is: will it reach the yearly low of $0.44?

XRP has been steadily losing value over the last few weeks as it has been in a downtrend. The first real red flag appeared when the 50-day EMA disappeared. After that, XRP dropped below both the critical psychological support level of $0.5, which is represented by the orange line on the 100-day EMA, further deteriorating its technical outlook. 

Related

The annual low of $0.44 is the next significant support level for XRP. The likelihood of reaching this level appears to be growing given the state of the market and technical indicators. There is a long-term bearish trend indicated by the 200-day EMA, which is still significantly above the current price. 

The absence of significant purchasing power is one of the primary causes of XRP's downfall. The asset finds it difficult to hold onto its value, much less increase it in the absence of substantial buy-side interest. Due to investor caution brought on by macroeconomic uncertainties, the overall market conditions for cryptocurrencies are currently not very favorable.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD