Ethereum Faces Intense Selling Pressure

Ethereum is experiencing aggressive selling pressure, leading to a marketwide sell-off. The latest data shows that ETH has lost significantly, with its market capitalization dropping by billions.

Currently priced at $2,314, ETH’s value reflects a considerable decline from its peak, resulting in a loss of over $32 billion in market value in a short time. The primary cause of Ethereum’s troubles appears to be constant selling activity, particularly from larger holders. This situation has placed the asset in a precarious state due to the triggered chain reaction from this selling pressure.

Unfortunately, the downward trend is intensifying, and Ethereum’s short-term market outlook is bleak. The breakdown of key technical levels is fueling bearish sentiment among investors. The $2,300 mark is a crucial price level to monitor.

This barrier, if breached, could lead to even greater losses, as Ethereum is perilously close to it. The next significant support is around $2,150, near previous consolidation zones. If ETH breaks through these levels, a further price collapse towards $2,000 or lower may occur.

Bitcoin’s Strange Position

After 200 days of low volatility and diminished liquidity, Bitcoin is in a state many are calling limbo. Traders are frustrated with Bitcoin’s 2024 performance, as sporadic price spikes have not broken its declining trend.

BTC needs to decisively overcome significant resistance levels to gain upward momentum. A breakout above $63,000 is critical for any meaningful rebound, while a breakdown below the $59,000 support level could trigger a more severe correction. This prolonged low volatility is apparent in both price movements and the decreased liquidity on exchanges.

With many traders exiting, trading volume has declined, hindering Bitcoin’s appreciation and creating a challenging trading environment. Currently, Bitcoin fluctuates between pivotal support and resistance levels.

The continued downward trend suggests further losses may occur unless significant improvements in volume and market sentiment arise. Traders should watch the $63,000 resistance and $59,000 support closely, as breaking either level could dictate Bitcoin’s next significant move.

XRP Experiencing Erratic Movement

XRP’s recent performance has been marked by erratic and chaotic behaviors, leaving both bulls and bears in disbelief. Initially, a symmetrical triangle pattern suggested a well-defined breakout. However, the subsequent price movement resulted in substantial losses for traders.

After initially breaking higher, many anticipated a bullish trend. However, this led to a false breakout scenario, causing significant harm to bullish traders hoping for a rally. The erratic movement continued, with XRP trading well below its initial breakout level instead of consolidating.

This volatility likely caused numerous liquidations among both the bears, surprised by the false breakout, and the overly leveraged bulls. Consequently, XRP has fallen below key moving averages, indicating that without significant buying pressure, the asset may continue its decline.

At present, the $0.55 support level and the $0.50 psychological barrier are essential price points for XRP to watch.

If XRP breaks below the $0.50 level, it may signify a failure to hold significant support, leading to increased downward pressure. Nevertheless, regaining the $0.55 mark could indicate a reversal or stabilization. Given its volatility, XRP remains a risky asset to trade, and investors should exercise caution amid this turbulent phase.

This article was originally published on U.Today