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- Bitcoin price consolidation within an ascending trendline likely to exhaust soon with $34,000 in the cards for the people’s crypto.
- Ethereum price could lose the support offered by the lower boundary of the supply zone at $1,861 amid waning momentum.
- Ripple price on a recovery rally and could break past $0.69 depending on how the bulls play their hand.
Bitcoin (BTC) price rallied only to show reluctance to move forward at a critical point. Now, all the ground covered may be at risk as the bears now have leeway to take advantage. The sentiment is similar for Ethereum (ETH) price but Ripple (XRP) may have something in the cards.
Also Read: Week Ahead: Ditch Bitcoin for these altcoins this week likely to be more profitable
Bitcoin price uptrend stalls, makes $34,000 likely as markets don’t pause
Bitcoin (BTC) price uptrend seems to have lost steam. With the king of crypto still consolidating within the confines of an ascending parallel channel, a retest of the lower boundary seems likely following weakening momentum.
The Relative Strength Index (RSI) indicator is not only moving flat but also deviating to the south, hinting at buyer exhaustion now that momentum is falling. The Awesome Oscillator (AO) histogram is also moving toward the midlines with a sustained series of red bars as seller count continues to increase. Also, the Moving Average Convergence Divergence (MACD) indicator has also crossed below the yellow band, another sell signal that arises as longs close their positions.
As such, Bitcoin price could soon break below the lower boundary of the ascending channel to potentially test the $34,000 level. If this support level fails to hold, the slump could extend to $32,000 or even the $31,190 support level. Such a move would constitute a 12% slip from current levels.
BTC/USDT 1-day chart
The narrative would be different, however, if sidelined investors join the rush, with the ensuing buying pressure extending the gains for Bitcoin price. In such a turn, BTC could overcome the $35,500 barricade and move higher, breaking past the $35,984 range high.
Also Read: Bitcoin price trends above $35,000 after BTC survives sell off by miners
Ethereum price could fall out of the supply zone at $1,861
Ethereum (ETH) price has faced a rejection from the $1,935 level, the midline of the supply zone that extends from $1,861 to $2,004. The largest altcoin by market capitalization could soon fall out of this supplier congestion zone.
A retracement to the $1,800 level or lower to the $1,748 support level seems likely, with the RSI teasing above the 70 level with a deviation to the south.
ETH/USDT 1-day chart
However, judging from the stance of both the AO and MACD indicators moving into positive territory, bulls still have a presence in the ETH market. Increased buying pressure from this cohort of traders could send Ethereum price past the $1,935 level, with a flip of this barrier to a support floor confirming the continuation of the intermediary trend.
In a highly bullish case, Ethereum price could extricate itself from the grasp of the supply zone above $2,004 to tag the $2,029 resistance level. A flip of this hurdle into support would set the tone for ETH to reach for the $2,141 range high, a level last tested in mid-April.
Also Read: Ethereum whales scoop up the altcoin, likely to catalyze ETH price rally
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
Ripple price in recovery rally, $0.69 level is critical
Ripple (XRP) price is in a recovery rally, confronting the $0.69 resistance level. Depending on how the bulls play their hand, it could be a make-or-break moment for the payments token. Overcoming $0.69 would set the tone for an extension to the supply zone between $0.77 and $0.81. A break and close above its midline at $0.79 would embolden XRP to collect sell-side liquidity as it heads toward the $0.93 range high.
The RSI at 75 shows XRP is overbought, signaling traders should not open new positions but keep their existing ones open until the RSI is at the brink of crossing below 70. A closer look shows a promising deviation of the RSI as bulls fight with their last breath.
Meanwhile, the histogram bars of the AO shows bulls are leading the market. The MACD also supports the outlook, moving north as momentum continues to grow.
XRP/USDT 1-day chart
Conversely, increased selling pressure could send Ripple price south, breaching the $0.66 support before ultimately slipping below $0.59. A break and close below $0.59 would invalidate the bullish thesis, sending XRP toward a consolidation phase under $0.53.
Also Read: Ripple hits new milestone in payments, likely catalyst for XRP price
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