Ethereum Bounce: ETH Not Free From Aggressive Sellers After 27% Drop

Posted on July 8, 2024 by Dalmas Ngetich

Ethereum is in red and bearish even after the weekend recovery. ETH is down, looking at events of last week, though stable at press time. At press time, the coin remains at second but still trailing BTC, which is more liquid but could post gains this week, extending gains from July 6. For now, sellers might look to dump on every high, targeting May lows, a level that was retested last week.

Presently, Ethereum is down 2% in the past day and 16% in the previous week amid the expected drop in average trading volume. At press time, participation is down to $14.4 billion, lower than last week’s average. Even so, as prices fluctuate, engagement will likely increase, boosting participation to the desired levels.

Today, the following Ethereum news events are worth watching:

Franklin Templeton, one of the multiple firms interested in issuing a spot Ethereum ETF, is bullish on the second most valuable coin. In a report, the firm said the platform will continue to anchor the decentralized economy and open up more community opportunities.
Eyes are on spot ETFs and when the United States SEC will approve this complex product. Some expect the derivative to hit the market within two weeks. Before then, traders should wait. It is expected that a spot ETF will lift sentiment, pushing the coin above $4,000.

Ethereum Price Analysis

The downtrend remains, even with prices recovering and floating above $3,000.

Thus far, [[ETH/USD]] remains 27% down from March highs.

At the same time, prices are inside the July 4 bar.

Accordingly, every high might offer entries for sellers to dump, targeting $2,800 in the short term.

However, if prices bounce from spot rates, closing above $3,000 and ideally $3,300, there could be more room for growth in the short term.

Conversely, if sellers press on, not only will Ethereum retest $2,800, but it could sell off to $2,500.

XRP Firm But Weak: Will Ripple Bears Force Prices to $0.30?

Posted on July 8, 2024 by Dalmas Ngetich

XRP is bearish and trending below $0.46, meaning sellers are in control despite the 11% expansion over the weekend. At press time, prices are consolidating horizontally. From the candlestick arrangement, traders might consider selling on every attempt high, attempting immediate resistance. Only this preview will shift should prices not only expand back to the range but surge to over $0.55, fueled by rising trading volume.

At press time, XRP is down roughly 5% on the last day and 12% on the previous week. Though prices are volatile, considering the sharp drop of last week and the near-instant recovery over the weekend, participation remains low, at less than $1 billion. Engagement will expand in the days to come, especially if prices continue trickling lower in the sessions to come. For now, a breach of $0.40 might push the coin lower, even to $0.35 and $0.30, triggering more liquidation.

The following XRP and Ripple news are trending:

Even as prices consolidate and drop, per the performance of last week, some analysts are upbeat. Citing technical analysis, they expect prices to shoot higher, ripping above $0.74 in a bull trend continuation formation.
By 2025, the XRP Ledger would be processing up to $50 trillion. This is according to the CEO of Archax, a trading platform. The expansion will be due to the rise of tokenization, a step increasingly popular on Ethereum.

XRP Price Analysis

[[XRP/USD]] is stable and bearish.

From the daily chart, the coin is moving within a bear breakout formation.

The immediate resistance is $0.46.

As long as prices are below this liquidation line, every attempt high may be an opportunity to dump, targeting $0.40 and $0.38, marking last week’s low.

Further losses may see XRP sellers ride the breakout of last week to $0.30.

If not, a recovery above $0.55 will cancel this bearish outlook set in motion on April 13.

Sellers dominate Ethereum Market

Posted on July 7, 2024July 7, 2024 by Olumide Adesina

Ethereum at the time of writing trades below the $3K market after declining by over 11% over the past week.

After about $84.87 million in Bitcoin were transferred to hot wallets managed by a Japanese exchange, the now-defunct Mt. Gox exchange started paying back its creditors. The overall bad attitude in the crypto market was heightened by such a narrative, with Ethereum leading the way in sharp falls for the week.

Many anticipated that the general market attitude would not impact Ethereum because of the impending spot ETH ETF launch, However, bears may have gained momentum because of the Securities & Exchange Commission’s (SEC) tardiness in approving issuers’ S-1 drafts.
Spot ETH ETF issuers’ 19b-4 forms were approved by the SEC on May 23, but the products can only be traded once their S-1s are approved. Among the potential issuers are VanEck, BlackRock, Bitwise, Grayscale, 21Shares, Fidelity, Franklin Templeton, and Invesco.

If approved, ETH’s price might surge to challenge the $4K downward trendline, bucking a sluggish market trend and minimal selling pressure. The Ethereum coin won’t start to increase again unless there is a positive break out of the resistance level.

Since May, when most investors thought the SEC would reject a spot ETH ETF after learning that it was investigating Ethereum 2.0, the price of ETH has fallen to its lowest point. ETH fell below the critical $2,852 support level, although it soon began to exhibit mild exhaustion.

Upon closely examining the daily chart, one can see that sellers eventually took control, resulting in a break below the significant 100-day moving average at $3386, following a prolonged stretch of corrective retracements at this critical MA.

The breach accelerated the negative trend because this area was teeming with buying interest and demand. It also created a major long liquidation cascade. Consequently, the price fell and broke through the significant 200-day moving average of $3,096.

With sellers in control, this price action affirms Ethereum is in a pessimistic mood. On the other hand, the likelihood of the negative trend continuing increases if there is a retreat to the 200-day MA breaking. Since mid-February, Ethereum has been unable to maintain a sustained move below this level of support. Furthermore, according to statistics from IntoTheBlock, investors bought roughly 57 million ETH between $2,268 and $2,909.

Bitcoin spot ETFs relief bulls in a fragile crypto market

Posted on July 6, 2024 by Olumide Adesina

Bitcoin began trading early on Saturday at roughly $56.5K from Friday’s $53.7K dip amidst a tumultuous week. Traders are worried about the Bitcoin transfers and Mt.Gox repayments made by the German authorities. Currently, 75% of Bitcoin wallet addresses are profitable, according to IntoTheBlock data.

If traders continue to pocket profits, there may be further pressure to sell Bitcoin. Following the recent US Independence Day, on July 6, there was a significant withdrawal from Bitcoin spot ETFs as Bitcoin’s price dropped below $54K In the next weeks, traders expect prices to drop as low as $50,000, a level not seen since mid-February, as billions of dollars worth of selling may add pressure on the largest crypto asset by market capitalization.

53,680 traders were liquidated for the day, for a total liquidation value of $190.01 million. The greatest single liquidation order, worth $11.4 million, was placed on OKX for BTC, USDT, and SWAP.

Coinmarketcap data revealed Bitcoin’s price plummeted by more than 10% in the last seven days. On Thursday, it dropped below a crucial technical signal, wiping out all of the gains made since the end of February. The sale of bitcoin that the US and German governments had confiscated, together with “preemptively selling” when the estate of the now-defunct Japanese exchange Mt. Gox began to reimburse investors last month, were the main causes of the market collapse.

Bulls got some relief as Farside data showed that this is the biggest net inflow they have seen in a month, with an astounding $143.1 million going into the Bitcoin market.
With an astounding $117 million in inflows, the Fidelity Bitcoin ETF led the pack, demonstrating significant investor trust in the fund.

(BITB) totaled $30.2 million, whilst inflows into the ARKB and HODL ETFs were $11.3 million and $12.8 million, respectively. On the other hand, the Grayscale Bitcoin Trust (GBTC) saw a net withdrawal of $28.6 million, in sharp contrast to the overall upward trend of other spot Bitcoin ETFs.
The Federal Reserve’s potential September interest rate cut, according to fundamentals, might lead to another attempt at a bitcoin surge.

Forex Signals Brief July 5: Rolling Up to the NFP Report

Posted on July 5, 2024July 4, 2024 by Skerdian Meta

Yesterday the main events were the release of the CPI inflation report from Switzerland and the UK Construction PMI, both of which came in softer. But while the former sent the CHF lower, with USD/CHF jumping 40 pips higher, the later didn’t have much effect on the GBP. Cable (GBP/USD) was a focal point on election day, but the driving force over the past two days has been the pound’s recovery, with the election outcome being largely anticipated.

Continue reading “Forex Signals Brief July 5: Rolling Up to the NFP Report” →

Bitcoin Melting: Even With Exchanges Buying, Is $50,000 Unavoidable?

Posted on July 5, 2024 by Dalmas Ngetich

Bitcoin is deep in red at spot rates, looking at price action in the daily chart. The coin is down double digits from all-time highs amid unrelenting bears. As things stand, bulls stand no chance unless there is a welcomed recovery from spot rates, racing above $60,000 and above $63,000. If this doesn’t pan out, the path of least resistance will be southwards, with the potential of the world’s most valuable coin even slumping to as low as $50,000.

At spot rates, Bitcoin is down 8% in the past day and 12% from the last trading week. Meanwhile, as prices trend lower, more traders are shorting and aligning with the primary trend. So far, the average trading volume exceeds $49 billion, levels last seen when the coin was rallying towards all-time highs.

Bitcoin Daily Chart for July 5

Traders should watch the following Bitcoin news events today:

Amid the sharp sell-off, solid data shows that options traders are net bullish. Going by their recent bets, it appears that more are banking on the coin to shake off current weakness and bounce sharply.
Some analysts think Bitcoin prices could be far worse than is the case. This is so because exchanges have been buying the dip, artificially supporting prices. Even so, it remains to be seen for how long exchanges will continue buying.

Bitcoin Price Analysis

The path of least resistance is south, per the formation in the daily chart.

Thus far, [[BTC/USD]] is down 27% from all-time highs.

Of note, BTC has fallen below two crucial support levels in $60,000 and, earlier today, $56,500. The latter marked May 2024 lows, and was the primary support of the May to June 2024 range.

As Bitcoin plunges today, traders should be prepared for the worst now that BTC bears eased past $56,500 and May 2024 lows.

From this, every attempt high offers entries for aggressive sellers to unload, targeting $50,000 and $45,000—which marks January highs.

Ethereum Crashing: ETH Down 30% in 6 Weeks Despite Spot ETF Excitement

Posted on July 5, 2024 by Dalmas Ngetich

Ethereum is dumping, decisively breaking below $3,300 and $3,000 in two days. As things stand, the coin is at multi-week lows, and sellers are firmly in control. Unless there is a refreshing bounce, aggressive traders might consider unloading on every attempt higher, ideally towards $2,800 and $2,500. This means that bears would have reversed all gains posted in late May.

Looking at the state of price action, it is clear that sellers are in charge. Ethereum is down 11% in the past 24 hours, pushing weekly losses to double-digits. As sellers press on, more traders are joining in, increasing their shorts. Accordingly, the average trading volume has been swelling over the last day, expanding to over $27 billion.

Ethereum Daily Chart for July 5

With Ethereum under immense selling pressure, the following trending news developments are worth tracking:

Though prices are down, Grayscale is upbeat about Ethereum as a platform and the prospect of ETH, considering its key role in priming the ecosystem. Amid rising adoption and increasing regulatory clarity, the asset could benefit massively, lifting sentiment and prices.
As Ethereum slides, more investors are banking on the coin to recover. Most supporters are looking at the spot ETF set for launch, likely in mid-July. Currently, the United States SEC is in the final stages of approving S-1 registration forms from applicants.

Ethereum Price Analysis

[[ETH/USD]] is deep in red, and buyers are struggling amid the wave of liquidation.

Technically, since gains of the May 20 bull bar have been reversed, bears are firmly in control.

Accordingly, traders can consider shorts on every attempt higher but below $3,000. The immediate target would be $2,800. However, should there be more losses today; forcing Ethereum below May 2024 lows, ETH would easily slide to $2,500.

This preview will only change if there is an unexpected recovery above $3,000 today or over the weekend.

XRP Down 45% In 3 Months: Ripple Broke Below A 4-Month Consolidation, Back To $0.30?

Posted on July 5, 2024 by Dalmas Ngetich

XRP plunged yesterday, crashing below $0.46 after roughly four months of distribution. Looking at the formation in the daily chart, it is clear that sellers are back in the picture. Despite initial hope, with traders expecting prices to bounce above $0.55 after gains in mid-June, the coin tumbled today. By falling, XRP effectively extended mid-this week’s losses, crashing any attempt to prop up prices. Unless buyers unexpectedly flow back today, reversing losses, it will be a rough day for bulls.

Like the market-wide losses across the board, XRP is in red and fragile. Of note, the seventh most valuable coin is below crucial support, a cause for concern. After months of boring sideways movement, the coin is down roughly 13% in the past day and week.

As price action dominates, Ripple and XRP traders should also watch the following news events:

Yesterday, Ripple, the blockchain company using XRP in their On-Demand Liquidity (ODL) solution, announced the launch of a new API. Through this interface, developers would be free to test borderless payments using simulated funds.
After filing for a Notice of Supplemental Authority, following the ruling on the United States SEC versus Binance case, Ripple hoped for the best. However, as it turned out, the regulator’s lawyers said the case was irrelevant as the court prepares to rule on the penalty the blockchain company should pay.

XRP Price Analysis

[[XRP/USD]] is down 45% from March highs.

The primary trend is bearish, following the bearish breakout formation of April 13.

Since bulls didn’t break above $0.55, nullifying the emerging bear trend, the drop of July 4 confirmed the downtrend. Of note, yesterday’s crash meant XRP broke below a multi-week consolidation after the dump in mid-April.

Therefore, in light of these events, aggressive traders might consider selling on every bounce, targeting $0.35 and $0.30 in the short term.

May’s Low at $57,000 Holds as Support for Bitcoin

Posted on July 4, 2024 by Skerdian Meta

Bitcoin was finding some solid support at the $60,000 zone, which was a good place to go long for some time, bit it has taken a sudden turn. The cryptocurrency experienced a significant drop this week, falling below $60,000 yesterday and continued to decline today, falling to the next critical threshold which is low from early May. The price briefly dipped below $57,000, raising the possibility of a more substantial break on the charts.

Continue reading “May’s Low at $57,000 Holds as Support for Bitcoin” →

Bitcoin drops below $57K,131,631 traders liquidated

Posted on July 4, 2024July 4, 2024 by Olumide Adesina

Bitcoin dropped below $57K for the first time since May, marking more than a 5% loss in a single day. Mt. Gox wallets started moving with test transactions after being inactive for a month, increasing the likelihood of asset distributions and escalating selling pressure.

The sell-off happened at the same time that the German Federal Criminal Police Office transferred over $75 million to cryptocurrency exchanges and that activity began to appear in the wallets of the now-closed Mt. Gox cryptocurrency exchange for the first time in a month.

In the past 24 hours, 131,631 traders were liquidated, totaling $372.75 million in liquidation value. For ETHUSDT, the highest liquidation order was made on Binance, valued at $18.48 million.

The crypto market valuation fell to $2.09 trillion, down 6.07% from the previous day. $90.34 billion has been traded on the cryptocurrency market in the last 24 hours, a 34.44% gain.

The founder of Tron, Justin Sun, made a bid to purchase the German government’s more than $2.3 billion worth of Bitcoin assets. The well-known cryptocurrency pioneer planned to lessen the negative impact by buying BTC off-market,” Sun wrote in a July 4 X post to his 3.5 million followers, announcing the offer.

Concerns regarding potential Bitcoin sales were raised on June 19 after 6,500 Bitcoins worth more than $425 million were transferred via a wallet connected to the German government.
Since market selling of the remaining holdings may harm the price of Bitcoin, traders were discussing the wallet a lot.

Before the first transfer, the wallet contained roughly 50,000 BTC since February 2024. The financing source is believed to have been Movie2k, the proprietor of the pirate movie website.