Ethereum managed to break above $2,600 after buyers took control of the short-term price action. Since recording a 6-month low on Monday ($2160), ETH recovered over 20%.
Key Support levels: $2,550, $2,200
Key Resistance levels: $2,805, $3,000
ETH had seen a positive weekend so far, managing to break and daily close above the critical resistance at $2,550 which has now turned into support. The immediate resistance is now found at $2,805 and if ETH maintains the bullish momentum, then the price might target the $3K milestone, which is a key psychological level.
Chart by TradingView
Technical Indicators
Trading Volume: Decent volume during this most recent rally. However, the weekend volume remains low, and best to wait for Monday to confirm the current price action’s momentum.
RSI: The RSI has surged above the oversold area and is moving higher. The most important thing is for the RSI to make a higher high and break away from the downtrend that has lasted since November.
MACD: Good news for buyers as the daily MACD did a bullish crossover today. This can indicate the start of a significant rally that can push ETH back towards $3,000.
Chart by TradingView
Bias
The current bias for ETH is short-term bullish, as shown by the indicators.
Short-Term Price Prediction for ETH
ETH is giving some clear bullish signals and appears ready to move even higher. If ETH can break the resistance at $2,805 and then challenge the key psychological level at $3,000. The momentum over the weekend is not the strongest, thus best to wait for the Monday’s price action to confirm the current bias.
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This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Luna,
Ethereum (ETH)
This past week, ETH finally found support after a significant crash under the $3,000 level. The support at $2,200 managed to stop the downtrend, and now the price is found in a consolidation mode below the key resistance at $2,550. It was not an easy week for ETH, losing 20% of its dollar value.
The cryptocurrency attempted to rally this past Wednesday, briefly reaching $2,725 before sellers pushed the price back below the key resistance. Since then, ETH has not managed to retest the level and has moved sideways. While this shows some indecision in the price action, at least this most recent move has prevented ETH from dropping lower.
As price consolidates, market participants become more uneasy because there is no way to know if this consolidation precedes a further correction or a recovery. The indicators do not bring any confidence on the buyer side, and the overall market appears weak.
Chart by TradingView
Ripple (XRP)
XRP has been moving just above the key support level at $0.58 for most days in the past week after a significant drop last Friday. Overall, XRP fell by 17% compared to seven days ago and has failed to recover most of the recent losses.
The current price action does not inspire confidence, and a retest of the key support appears likely. The resistance is found at $0.65, and the last retest was sharply rejected by the bears. Since then, the price has been on a slow descent towards support.
Looking ahead, XRP lacks buying pressure to attempt a breakout, and if the market remains weak, it may be that sellers will take advantage and push the cryptocurrency lower yet again. The RSI on the daily timeframe has not left the oversold area in over a week now. This signals a strong downtrend as the bias remains bearish for XRP.
Chart by TradingView
Cardano (ADA)
ADA appears on a clear path towards testing the support at $1 after failing to rally beyond the resistance at $1.1. Price has continued to make lower highs, and in the past seven days, ADA lost 19% of its dollar value.
Moreover, ever since the cryptocurrency made its all-time high at $3.1, the trend has been bearish, with lower lows and lower highs. The most recent lower low was made last Saturday. This re-confirms the bearish trend, and continuation is the most likely outcome. Volume has also decreased substantially, which may explain why the price is hesitating on where to go next.
A break below $1 might have a major psychological impact on ADA’s future price action. Therefore, it’s expected to see a significant battle over the coming days as buyers and sellers will fight for dominance around this key level.
Chart by TradingView
Solana (SOL)
SOL mirrors ADA and shows a similar level of uncertainty just above the key support at $79. The price action remains bearish with lower highs and lower lows after a failure to break above the key resistance at $100. A retest of the support appears likely, and SOL closed the past seven days in red, losing 30% of its value.
Sellers continue to dominate the price action, with five red daily candles in the past seven days. Moreover, the daily RSI has been moving flat in the oversold area at around 24 points for over a week. The failure of SOL to rally and move away from such extremes is a warning sign that sellers may not have finished their job yet.
Looking ahead, SOL has a good chance to stop the downtrend at the $79 support level. Then, if buyers return to the market, it can attempt a recovery.
Chart by TradingView
Luna
Luna lost a key support level yesterday, falling under $54, and now the price appears ready to move lower. If buyers cannot stop this selloff, then Luna is likely to fall to the next support level at $42. Overall, it had a very disappointing week, losing 33% of its value over the past seven days.
The former support level at $54 has now turned into resistance, and the indicators are in a free fall. The daily RSI has not yet reached the oversold area, indicating that Luna can continue to fall for quite some time until it reaches this extreme that may attract buyers again.
The MACD histogram and moving averages are also expanding downward, with little evidence this selloff will end soon. Right now, the sellers dominate the chart with six red candles in the past seven days.
Chart by TradingView
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Yesterday’s excitement in the market was short-lived. ETH rallied to $2,700 but quickly fell back below the key resistance at $2,550. For this reason, it’s reasonable to assume that this was a fake-out and until the key resistance is confirmed as support, it is too early to confirm a breakout. The support sits at $2,200.
Chart by TradingView
Technical Indicators
Trading Volume: The volume on the most recent rally was good. It seems unlikely for ETH to fall much lower at this time, considering buyers are back.
RSI: During the crash, the daily RSI went to almost 21 points, falling deep into the oversold area. Now, the RSI sits at 28 points and is about to leave it. This is good news for buyers and may set the stage for a possible price breakout.
MACD: The daily MACD is curving back up at a fast rate, as indicated by the histogram. If a positive crossover can take place in the coming week, then ETH has a good chance to enter a sustained relief rally.
Chart by TradingView
Bias
The current bias for ETH is currently neutral. The price action indicates an equilibrium has been reached between market forces, with sellers unable to push prices much lower.
Short-Term Price Prediction for ETH
If ETH is able to break the key resistance at $2,550 again and make it support, then a sustained relief rally could take the cryptocurrency higher. Should ETH fail to rally, then the key support at $2,200 has proven resilient in the face of sellers.
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ETH has rallied 10% after touching the $2,200 support level yesterday. Now, the cryptocurrency is moving towards the critical resistance at $2,550, where the price was previously rejected. If it manages to move above this level and turn it into support, then it has a good chance to go higher and recover some of the most recent losses.
Technical Indicators
Chart by TradingView
Trading Volume: The volume has been high in the past few days and favored the sellers. However, as ETH has reached oversold conditions, the immediate trend may change and put ETH back on the uptrend.
RSI: The daily RSI is in the oversold area at 26 points. It is likely to leave this extreme position soon as ETH attempts a relief rally.
MACD: While the daily MACD is bearish, the histogram today has made a higher low. If this is maintained, then ETH may reverse course soon and attempt to break the key resistance.
Chart by TradingView
Bias
The bias for ETH is currently bearish. While the indicators remain bearish, a reversal is becoming likely. A break of the key resistance would confirm that and change the bias.
Short-Term Price Prediction for ETH
The most probable scenario right now is for ETH to attempt a break of the key resistance at $2,550. If successful, then it can enter a sustained rally towards $3,000. If the price is rejected again by the resistance, then the key support at $2,200 should provide a good defense.
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Jim Cramer, the host of CNBC’s Mad Money show, believes the selloff in the cryptocurrency market could close to an end. This comes amid the massive price declines among all assets, with BTC losing over $10,000 in just days at one point.
Is The Selloff Over?
The past five days were nothing short of a volatile rollercoaster for the crypto market. Bitcoin went from above $43,000 to a six-month low below $33,000 in this time frame before it bounced off to its current stance at around $36,000. The altcoins went through even more severe price fluctuations with massive double-digits slumps.
Overall, the cumulative market capitalization of all digital assets declined by over $500 billion at one point. Aside from the mass pain for over-leveraged traders in terms of liquidations, this correction also brought the general sentiment down to an extreme fear state.
However, CNBC’s Jim Cramer believes that this price decline, at least for bitcoin and ether, could be over soon.
“When the charts, as interpreted by Tom DeMark, say that both bitcoin and ethereum could be looking at downside trend exhaustion bottoms this week, if not today, I think you need to take him seriously.”
By touching upon DeMark’s words, Cramer outlined a previous similar correction in which BTC declined by more than 50% in less than two months. He believes that “history can repeat itself” and bitcoin can bounce off soon.
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Bitcoin Historical Price Movements. Source: CNBC
Is It Time to Buy?
Cramer already has a somewhat controversial history with the cryptocurrency space. He went from calling bitcoin an “outlaw currency” to buying some portions of the asset and then using the profits following BTC’s price appreciation to pay off his mortgage.
He also seemed bullish on the second-largest crypto, advocating for it on numerous occasions. At one point, though, he revealed that his BTC and ETH investments were just pure gambling.
While asserting that the most recent price slides could be over soon, Cramer now said that he will consider re-entering the market.
“To me, that says it might be too late to sell, and you need to consider buying. I know I am, especially if we get a final leg down.”
This final leg, according to DeMark’s analysis, could take BTC below $30,000 before the asset starts regaining value again.
Featured Image Courtesy of CNBC
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The Friday crash had driven ETH below $2,500, wicking at $2,300 – a price not seen since July 2021.
Key Support levels: $2,300, $2,000.
Key Resistance levels: $2,500, $2,750, 3,000
This week’s market carnage was not kind to ETH, which recorded a daily close below $3,000 for the first time since the end of September. Furthermore, ETH saw a low of $2,300 on Bitstamp, at the peak of the collapse.
Since yesterday, ETH was able to rebound till encountering the $2,500 support turned resistance. After losing the $3,000 support, ETH likely entered a significant correction that may take months to recover.
Chart by TradingView
Technical Indicators
Trading Volume: Very high volume was recorded during the selloff on Friday. The bears are in control.
RSI: The daily RSI also got slammed in line with the price, reaching 21 points and, just as Bitcoin, the RSI is currently deep in the oversold area. Price may enter a relief rally, but unlikely for the mid-term correction to end even if that happens.
MACD: Daily MACD quickly fell into the bearish territory with the histogram and moving averages expanding on the negative side. A reversal appears unlikely in the short term, as sellers completely control the market.
Chart by TradingView
Bias
The bias for ETH is currently bearish. With the $3,000 support breakdown, ETH entered an intense correction.
Short-Term Price Prediction for ETH
It is unlikely that the correction will end anytime soon and any relief rally will only be temporary as ETH seeks a bottom. Until that is found, the next support level, should $2,300 fail, is located at $2,000. The next major resistance is $2500, followed by September lows at $2750.
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The recent market correction doesn’t seem to be a one-day thing, as the entire crypto space is covered in red once more. Consequently, over-leveraged traders continue to get liquidated with almost $700 million in hours.
CryptoPotato reported yesterday’s market crash in which bitcoin dumped by $5,000 in a day to a six-month low at $38,000. The altcoins had it even worse, with ETH losing the coveted $3,000 price point.
This enhanced volatility caused about $700 million worth of liquidations on a 24-hour scale.
While the bulls were expecting some sort of brief recovery today, the landscape has only worsened.
Bitcoin sat around $38,000 for a while before another dump drove it to its lowest price position since the end of July at around $35,000.
As with yesterday, the situation with the altcoins is even worse. Double-digit price drops are evident almost everywhere.
Ethereum is down by 12% to $2,500, Binance Coin (-16%), Solana (-17%), and many others. Terra is among the worst performers, with a 25% dump to below $60. Shiba Inu’s plummet is somewhat similar.
As a result, the liquidations are on the rise again. Data from Coinglass (formerly Bybt) shows that more than $680 million were liquidated in the past 12 hours. On a daily scale, the number is close to $1 billion.
In total, 270,000 traders have been liquidated in this timeframe, with the largest single order happening on Bitmex and was worst more than $9 million.
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To say that the past seven days were bad in the cryptocurrency market would be kind of an understatement. Most of the coins are down by solid double digits as the total capitalization lost around $250 billion and fell below $2 trillion.
Let’s start with Bitcoin. The cryptocurrency was behaving relatively well throughout most of the week, and it even managed to reach above $43K earlier on Thursday, attempting to conquer the resistance above that – at $44K. On Friday, though, everything took a turn for the worse. The price crashed from above $43K to below $38K, charting a six-month low as the last time BTC was trading below $38K was in August 2021.
Now, it managed to recover some of the losses and trades slightly below $39K, but it’s still down 9% in the past seven days. This entire ordeal left over $700 million in liquidations in 24 hours. The alternative coins failed to perform any better – at least most of them.
Ethereum lost the coveted $3K mark and is down 12.6% in the past 24 hours and almost 13% in the past seven days. BNB is down 11.4%, Solana is down 17%, XRP is down 11%, and DOT – 15%. The only cryptocurrency from the leading ones that did relatively well was Cardano’s ADA that’s down only 2.2% in the same period.
All in all, the market is in shambles, and the sentiment is quite negative. Calls for lower prices are everywhere, but it’s important to remember that the market rarely does what most expect. Therefore, it’s particularly important to remain very vigilant as we enter the weekend.
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On the other hand, some major companies like Facebook, Instagram, Google, and Intel, made various announcements – all furthering their involvement in the industry. This, however, had more to do with non-fungible tokens, which seem to be thriving.
In any case, it’s very exciting to see where the market will go next and if the capitalization will be able to reclaim the important $2 trillion mark.
Twitter Rolls Out Verified NFT Profile Picture Feature. One of the world’s leading social media platforms – Twitter – is set to embrace non-fungible tokens (NFTs). The company is enabling a feature that would let users officially verify NFTs used for their profile pictures.
Facebook and Instagram to Allow Users to Create and Sell NFTs: Report. Facebook and Instagram are the next social media giants that are reportedly going to hop on the NFT bandwagon. A recent release revealed that both are looking into different ways to allow users to create and sell non-fungible tokens.
Google Considers Allowing Users to Store Crypto in Digital Cards (Report). Tech behemoth Google is considering increasing its involvement in the cryptocurrency industry by allowing users to store crypto in digital cards. This is according to a recent Bloomberg report.
SEC Will Focus on Regulating Crypto Exchanges in 2022, Says Gary Gensler. The current Chairman of the United States Securities and Exchange Commission (SEC) said that the financial watchdog should regulate cryptocurrency exchanges directly and that this might be its focus in 2022.
Intel Plans Bitcoin Mining Chip Reveal At Upcoming Conference. The technology giant Intel plans to reveal a Bitcoin mining chip at this year’s ISSCC conference. This marks yet another advent from a major public company in the field of cryptocurrencies.
Animoca Brands’ Valuation Surges to $5.5 Billion With Fresh $360 Million Funding. Animoca Brands saw its valuation surge to $5.5 billion following a fresh funding round worth $360 million. This goes to show the growth in the fields of play-to-earn, non-fungible tokens, and the metaverse.
Charts
This week we have a chart analysis of Ethereum, Ripple, Cardano, Solana, and Polkadot – click here for the full price analysis.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
This week, we take a closer look at Ethereum, Ripple, Cardano, Solana, and Polkadot.
Ethereum (ETH)
Last night, the significant market crash pushed ETH’s price under the critical support of $3,000, which will now act as resistance. Unfortunately, the loss of this crucial psychological level is a major blow to most market participants and sets the stage for ETH to potentially explore lower levels this year. Compared to seven days ago, ETH lost 11.4% of its dollar value.
The outlook on the market is very bearish, and one of the possible scenarios is for ETH’s price to rally and confirm the $3,000 level as resistance, after which the correction may continue. The current support is now found at $2,800 but appears weak.
Looking ahead, considering this latest breakdown in market structure, ETH has a good chance to fall lower in 2022. Targets such as $2,000 or below are now a very real possibility due to the current price action. The only way this can be avoided is if ETH reclaims the $3,000 level and turns it into support again.
Chart by TradingView
Ripple (XRP)
XRP did not fare better after last night, losing the key support at $0.70, which is now being contested between bulls and bears. Overall, the cryptocurrency lost 9.9% of its price in the past week. The next key support level is found at $0.65 and may provide a short relief if the decline continues.
What is interesting to note about the XRP price action is that the drop yesterday was quite shallow if we compare it to BTC or ETH. This signals that the market already considers XRP to be at a significant discount. This may, of course, change in the future if the market remains bearish, but the bears were not as aggressive in this case.
Earlier this week, XRP gave some bullish signals, such as the higher lows on RSI and bullish MACD. However, due to this last drop in price, those signals have now been invalidated.
Chart by TradingView
Cardano (ADA)
ADA’s price action this past week resembles a roller coaster with price volatility being off the charts. After it rallied to $1.6, the price dropped back to $1.2. These are swings exceeding 30% in a few days. The key support just above $1 has not been tested during this most recent drop, but it did push ADA to erase most of its recent gains. Overall, the cryptocurrency is back where it was last week.
The resistance above $1.5 will likely not be tested any time soon considering current market conditions and the indicators on ADA are quickly turning bearish. It would be interesting to see how it performs in the coming week if the market remains bearish.
Looking ahead, Cardano just saw the release of its first decentralized automated market maker called SundaeSwap, which seems to have had a very difficult rollout with transactions stuck and huge slippage. The creators warned that they may face bottlenecks on the network, but this does not seem to bode well for ADA holders.
Chart by TradingView
Solana (SOL)
Yesterday night, SOL broke below the key support at $132, and the decline has temporarily stopped at the $120 level. However, this breakdown signals that SOL may fall to the next key support in the next few days found at $113.
The previous support has turned into resistance, and unless SOL moves above $132, it seems unlikely that this downtrend will end anytime soon. Overall, SOL had a terrible week, losing 15.6% of its value.
With this latest crash, the RSI has entered the oversold area (<30 points) on the daily timeframe, and the MACD did a bearish crossover. These are key signals that the bears have full control of the price action.
The overall picture for SOL is bleak, and the question is if it will manage to maintain a price level above $100. A failure there will signal a much deeper correction for SOL in 2022.
Chart by TradingView
Polkadot (DOT)
DOT also lost its key support at $24, ending a long consolidation period within a large price range ($24 – $32) that started in December 2021. Now, the price appears set to test the next key support level at $20. Due to this most recent price action, DOT has lost 11.2% of its valuation in a week.
The resistance is found at $24, as former support levels turn into resistance during an indecisive market. The indicators also continue to signal a bearish price action.
The coming week may see a general bounce across the market, and DOT may retest the $24 level. It is, however, important to keep an eye on the bigger picture and not be lured into potential traps.
Chart by TradingView
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The last three days brought a lot of fear in the market, and ETH’s price started falling towards the $3,000 support level. The market is now at a critical junction, and in the case of ETH, a break below this key support would be catastrophic for bulls. The previous level at $3,300 is now acting as resistance.
The next few days will be decisive.
Chart by TradingView
Technical Indicators
Trading Volume: The volume on this most recent drop was high. This shows that bears are having a feast, and the fear in the market has been increasing with each passing day. Since ETH is now close to the key support, it is likely that bulls will make a stand here.
RSI: After escaping from the oversold area last week, ETH failed to rally, and now the daily RSI is falling yet again towards the oversold area under 30 points. If the bulls fail to defend the key support, then the RSI will fall lower.
MACD: After the daily MACD completed a bullish cross, the price could not sustain the bullish momentum and the histogram is making lower highs. A bearish crossover could be next if buyers don’t stop the assault.
Chart by TradingView
Bias
The bias for ETH is currently bearish. However, it’s also important to consider that the bulls might try to make a stand at the key support level.
Short-Term Price Prediction for ETH
ETH has had a difficult week after falling almost 10%. The key support at $3,000 is really the last line of defense that can maintain optimism in the overall market. If the buyers fail to keep the price above it, then the cryptocurrency might fall much lower.
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