Main navigation

Ethereum's (ETH) Performance Raises Some Serious Questions

Thu, 08/03/2023 - 17:00
article image
Arman Shirinyan
Ethereum shows depressing tendencies on market as future of asset looks grim
Ethereum's (ETH) Performance Raises Some Serious Questions
Cover image via

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

The performance of Ethereum (ETH), the second largest cryptocurrency by market capitalization, is currently raising some serious questions. ETH has recently fallen below the $1,850 price level, which has triggered a further downfall, presenting a potentially gloomy picture for the near future.

Historically, Ethereum has shown a tendency to bounce back from significant support levels. However, the current scenario seems different. After falling below $1,850, the next support level is at the 200-day Exponential Moving Average (EMA), indicating that Ethereum might not see a bounce until it reaches the $1,785 price level.

Source: TradingView

The volume of ETH traded is also showing a downward trend, which typically indicates reduced market activity, and could signify bearish sentiment among investors. The descending volume, combined with the declining price, indicates a bearish market phase for ETH and could lead to increased selling pressure.

This recent performance is not taking place in a vacuum. Market sentiment has been swayed by the recent rumors of the Department of Justice (DOJ) launching a probe into Binance, one of the world's largest cryptocurrency exchanges. This investigation has added an extra layer of uncertainty to an already volatile market.

XRP falls under pressure

XRP has failed to maintain its position above the 21-day Exponential Moving Average (EMA). This misstep could potentially lead to a further price depreciation of approximately 7%.

After a promising rally, XRP unfortunately failed to maintain its bullish momentum and fell below the 21-day EMA. This event is typically perceived as a bearish signal by traders, indicating a possible downward trend in the near future. As a result, XRP is now making its way toward the 50-day EMA, a crucial support level that stands at a price threshold 7% lower than the current level. If this support fails to hold, the consequences could be even more severe for XRP's price.

Bitstamp Teasing Major XRP Announcement

However, all is not lost for XRP. There is a glimmer of hope hidden within the trading volume data. The current volume is descending, which in most cases signifies an upcoming trend reversal. In XRP's situation, where the coin is facing downward pressure, a decreasing volume could potentially act as a positive catalyst, leading to a halt in the bearish trend and possibly igniting a new upward trajectory.

It is worth noting that while the fall below the 21-day EMA and the descent toward the 50-day EMA suggest bearish momentum, these are just indicators, and actual market movements can vary based on a multitude of other factors.

Shiba Inu remains solid

Recently, SHIB has returned to the upper border of an ascending triangle, a pattern often seen as a bullish signal in the world of technical analysis. In many cases, this upper border acts as a strong support line once breached, offering a platform for prices to bounce back from.

In the case of SHIB, this setup might hint at a potential acceleration of the rally. If the support at this level holds, and the token manages to bounce off of it, SHIB could once again find itself on an upward trajectory. Given the resilience of this meme coin and the momentum it has shown in the past, this scenario is not entirely implausible.

Billions of SHIB Shifted by Whales as Shiba Inu Awaits Next Big Thing

As of now, SHIB is consolidating around the $0.000008 level, indicating a period of relative stability after recent market volatility. Consolidation periods can often precede significant price moves, making this a critical juncture for the token.

On-chain indicators also seem to support the potential for a bounce. Despite the uncertainty that often accompanies such consolidation phases, SHIB has shown strength in the form of robust trading volumes and consistent holder activity.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.