- Bitcoin price is up almost 5% in the last day, with momentum indicators bolstering the bullish case, but resistance lies ahead.
- Ethereum price is likely to face a rejection from the $1,682 level before a 10% pullback below the $1,552 range.
- Ripple price coils up for a run down to the $0.4600 support level unless bulls show resilience.
Bitcoin (BTC) price sprinted north then pulled back in an interesting turn of events that saw up to $40 million in total liquidations within a day. Specifically, $30.95 million shorts against $11.95 million longs were liquidated.
Ethereum (ETH) price followed BTC in the fluctuations, just the only $10 million shorts were liquidated against $5 million longs. Meanwhile, Ripple (XRP) price is at an inflection point.
Bitcoin price has a big move on the cards
Bitcoin (BTC) price is trading with a bullish bias, although much remains to be said as it confronts a critical barrier at $27,500. However, momentum indicators suggest rising momentum, and if sustained, the flagship cryptocurrency could shatter this level, with the potential to extend into the $28,000 range.
Further north, and in a highly bullish case, Bitcoin price could rise to the supply zone at $29,367, confirming the uptrend above this supplier congestion zone.
The Relative Strength Index (RSI) is moving north, suggesting rising momentum, just like the Awesome Oscillator (AO) is flashing green to show bulls are leading the market.
BTC/USDT 1-day chart
Conversely, a rejection from the $27,500 level could catch longs off guard. This could send Bitcoin price south, with a forecasted target below the $26,640 range and into the foothold of the descending trendline.
In a dire case, the largest crypto by market capitalization could extend to the demand zone, confirming the downtrend below its mean threshold at $25,357, or worse, extrapolate lower in an attempted liquidity grab.
Ethereum price is committed to BTC
Ethereum (ETH) price has mirrored Bitcoin’s price action for a long time now, with its strong correlation suggesting it will follow the king of crypto to its next move. As such, with the momentum RSI and AO indicators painting a bullish picture, ETH could breach the $1,682 level and extend north.
ETH/USDT 1-day chart
However, a closer look suggests an impending slump in Ethereum price, just like in the case of BTC with a lot of uncollected liquidity resting underneath. With this, the largest altcoin by market capitalization is likely to correct below the $1,552 support level before a sustainable move north.
What is Ethereum?
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.
What blockchain technology does Ethereum use?
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.
What is staking?
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.
Why did Ethereum shift from Proof-of-Work to Proof-of-Stake?
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 faces major roadblock
Ripple (XRP) price is confronting a major roadblock, presented by the supply zone marked by a red order block. Its mean threshold at around $0.5373 is the level to breach for a confirmed uptrend, which could pave the way for an extension to $0.6098, or higher, potentially reaching the $0.7000 psychological level.
XRP/USDT 1-day chart
On the other hand, a rejection from the supply zone or its mean threshold at $0.5373 is likely to send Ripple price toward the $0.4600 support level, or worse, plunge it back into the confines of the descending channel for a continued slump. A solid move below the midline of the channel at $0.4191 could mark the beginning of a new downtrend, considering it coincides with the last lower low of the previous uptrend.
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