Ethereum, by market cap, was on the brink of breaking down below $1,500 as the weekend approached, which would have taken its prices closer to its one-month low. The general mood among investors was mostly bearish, reflected by the global cryptocurrency market capitalization that was trading 0.96% lower at the time of writing. Bitcoin by market cap, also showed a slight decline, with prices hovering below $22,000.
Bitcoin still depreciates
Over the weekend, Bitcoin (BTC) continued its downward trend as prices persistently remained close to a three-week low. The cryptocurrency experienced a considerable decline from its peak of $21,919.33 on Friday to reach a low of $21,539.39 on Saturday. This recent drop further cements the fact that Bitcoin is trading near its lowest point since January 20th.
A closer examination of the chart indicates that the prices of cryptocurrency have experienced a resurgence after a period of decline. This resurgence was likely triggered by a move away from the 42.00 floors of the 14-day relative strength index (RSI).
The RSI is currently tracking at 46.35, with the next significant resistance level appearing to be at 50.00. Despite this slight rebound in prices, the momentum in the market remains largely bearish. This is evidenced by the approaching downward cross between the 10-day moving average (MA), represented in red, and the 25-day MA, represented in blue.
These technical indicators suggest that the market may still be susceptible to further decline in the short term. However, it is important to remember that the cryptocurrency market is highly dynamic, and such movements can change quickly
Ethereum dips as well
The Ethereum price has been struggling to overcome the $1,600 resistance level, leading to a continued decline similar to that of Bitcoin. Currently, ETH is trading below the crucial $1,550 support zone, which has pushed it further into bearish territory. The price even dipped below the $1,530 support level, causing a low to be formed near $1,492.
As a result, Ether’s price is exhibiting bearish signals below the $1,550 level and the 100 hourly simple moving average. The immediate resistance for Ethereum is situated near the $1,540 level, with a key bearish trend line forming with resistance at the same level on the ETH/USD hourly chart. This trend line is located near the 23.6% Fibonacci retracement level from the $1,700 swing high to the $1,492 low.
To reverse the bearish trend, Ethereum needs to break past the next major resistance, located near the $1,560 level and the 100 hourly simple moving average. A clear move above this resistance could potentially push the price toward the $1,600 level, which is close to the 50% Fibonacci retracement level of the decline from the $1,700 swing high to the $1,492 low
A break above the $1,600 resistance zone to the upside could trigger a steady upward trend. In such a scenario, the price of Ethereum could potentially rise toward the $1,650 resistance level.
Yet Another Ether Losses?
Should Ethereum be unable to surpass the $1,560 resistance, it may continue to decline. The first support level is close to $1,500, with more significant support at $1,480. In the event of a break below $1,480, the price could drop further toward $1,435. Further losses could lead to a potential test of the $1,365 support area
Investors and traders are closely watching Ethereum’s next move, as it could provide insights into the overall trend of the cryptocurrency market. The inability of Ethereum to recover above $1,600 and the continued decline, despite the bullish market sentiment, has caused some concern. However, it is important to remember that the cryptocurrency market is highly volatile and that prices can change rapidly. As such, it is essential for investors to remain vigilant and to keep a close eye on market developments.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.