U.Today – The recent sharp drop has dashed hopes for a long-term rally. With a dip below its ascending trend line, the cryptocurrency’s upward momentum has reversed. With ETH now trading at around $2,400, a dangerously low level for the second-largest cryptocurrency by market cap, this drop has forced the asset to fall below the crucial $2,500 barrier.
The $2,500 barrier has been broken. A drop below this mark indicates that Ethereum could be headed for further losses as it has historically acted as a crucial support zone. The bearish outlook is further supported by the decreased volume accompanying this drop. Lower buying interest is usually indicated by lower trading volume during a price drop, which could worsen the current downtrend.
The break below the ascending trend line is especially worrying as it indicates that the recent rally that had given investors hope is coming to an end. Ethereum may find it difficult to regain its footing in the near future as this trend line now acts as resistance.
Due to the shift in market sentiment, there is a growing possibility that we will see a more prolonged bearish phase. Traders and investors should prepare for a possible further drop as Ethereum remains hovering around the $2,400 level.
The decline of
Bitcoin price dropped sharply recently and returned to the 200-day exponential moving average. The confidence of traders who were expecting a long-term rally was shaken by this move, which is an indication of an imminent price correction and a possible trend reversal.
A $200 million market crash has investors concerned about Bitcoin’s short-term viability. A significant market cap drop like this could lead to further selling pressure and a potential price drop. Since the 200-day EMA has traditionally been a crucial support level, it is alarming that Bitcoin has been unable to hold above it.
The fact that Bitcoin has once again fallen short of the coveted $70,000 threshold during this market cycle is even more disheartening for cryptocurrency enthusiasts. For traders and investors, this level has been a key psychological target, and failing to reach it implies that bullish momentum has slowed. The recent price action makes it clear that Bitcoin is currently in a risky situation.
The market could be moving from a bullish phase to a bearish phase if it returns to the 200-day EMA. A longer downtrend could start if the price falls below this level, which could retest lower support levels near $55,000 or even $50,000.
back off
After a failed price reversal attempt, Shiba Inu, the once-dominant meme coin, now finds itself at a critical juncture. The 50-day exponential moving average (EMA), a critical resistance level that, when breached, typically signals bullish continuation, has proven difficult for the cryptocurrency to overcome.
Concerns about the asset’s near-term future arise due to SHIB’s inability to cross this threshold, suggesting a lack of buying support. The overall market sentiment regarding Shiba Inu is reflected by the fact that it has failed to break above the 50 EMA, which goes beyond a simple technical setback.
As the asset appears to be losing momentum, investors who were hoping for a strong rally might be re-evaluating their positions. As fewer and fewer traders are willing to bet on SHIB’s recovery, volume is declining, further highlighting the lack of confidence.
There is an increasing likelihood that Shiba Inu will experience a significant reversal given the market situation. Selling pressure from investors looking to cut their losses could intensify if the asset remains weak below the 50 EMA. This could trigger a downward spiral where the absence of buying interest accelerates SHIB’s decline and pushes it further away from its most recent highs.
This article was originally published on U.Today
