Ethereum (ETH) is in critical condition, here’s why Bitcoin (BTC) can’t hit $70,000, will XRP reach all-time lows? USA Today


U.Today – Despite starting to gain traction in the market, a severe and ongoing consolidation has produced almost no results and has only pulled ETH down to around $3,800, which is a significant sign of the asset's potential future performance.

Despite strong early momentum, ETH’s price action surprised many traders. Ethereum entered a consolidation phase after hitting resistance around $3,800. The current decline we are observing usually indicates market indecision, in this case anticipated through sideways movement. The price of Ethereum has dropped significantly over the past few days, approaching $3,500.

The market is generally bullish, so many people were surprised by this sudden drop. There are several possible causes for this unpredictable behavior. Initial liquidity issues may be critical. Additionally, macroeconomic factors and investor sentiment are always important. Ethereum's performance may be affected by recent global financial trends, regulatory news, or even a larger sell-off in the market. It's also important to remember that Bitcoin's volatility, such as falling below $70,000, can often have an impact on the entire cryptocurrency market, including Ethereum.

Technical indicators show that ETH has seen a sharp sell-off in a short period of time. Buyers re-entering the market could indicate potential for expansion. Moving averages also show another worrisome pattern: a short-term moving average crossing below the long-term moving average, which is usually a bearish sign. Despite the recent economic downturn, Ethereum’s fundamentals remain strong.

Bitcoin is struggling

Bitcoin is struggling to cross the $70,000 threshold for a number of reasons. A serious lack of purchasing power is one of the main reasons. Bitcoin’s price previously hit all-time highs due to massive capital inflows.

However, depending on market conditions, the number of new buyers willing to make these high-level investments is dwindling. The lack of buying interest makes it difficult for Bitcoin to break through the psychological barrier of $70,000.

Changes in institutional behavior are another important component. Although Bitcoin ETFs were crucial to Bitcoin's early rise, institutions are now moving funds away from Bitcoin ETFs. This change is partly due to people seeking better returns in alternative asset classes or new developments in the cryptocurrency industry.

Reduced institutional support weakens Bitcoin’s underlying price, as much of the buying pressure pushing prices higher comes from these large investors.

Additionally, Bitcoin currently lacks the strong fundamental drivers that have historically sparked huge bull runs. While the NFT craze has played a similar role in 2021, the ICO craze of 2017 pushed Bitcoin to unprecedented heights. There has been no trend or invention quite like this that has driven investor capital and enthusiasm for Bitcoin on a massive scale.

Bitcoin’s struggles are also reflected in technical indicators. There does not appear to be overbought or oversold conditions as the Relative Strength Index (RSI) has been hovering around neutral. This neutral RSI adds to the general indecision and uncertainty in the market, further hampering any meaningful price movement.

trouble

There is something really wrong with XRP’s current state. The asset has lost many key support levels such as the 50 EMA, the $0.5 psychological level, etc. Such performance undoubtedly puts XRP among the better-performing assets. However, the only question now is: will it hit a yearly low of $0.44?

XRP has been in a downward trend over the past few weeks and its value has been steadily losing value. The first real red flag appeared when the 50-day moving average disappeared. XRP has since fallen below the key psychological support level of $0.5 (represented by the 100-day EMA orange line), further deteriorating its technical outlook.

The yearly low of $0.44 is the next significant support level for XRP. Given market conditions and technical indicators, the likelihood of reaching this level appears to be increasing. The 200-day moving average indicates a long-term bearish trend, with the index still significantly above current prices.

The lack of strong purchasing power is one of the main reasons for XRP’s decline. The asset is finding it difficult to maintain its value, let alone increase its value without significant buyer interest. The current overall market conditions for cryptocurrencies are not very favorable as macroeconomic uncertainty leads to investor caution.

This content was originally published on U.Today





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