Ethereum
Facing a correction after the ETF-led rally
- Bitcoin price is unable to overcome the resistance zone of $69,712 to $71,907.
- Ethereum price is likely to return to the major support level of $3,360.
- Ripple price could end the consolidation between $0.463 and $0.572.
Bitcoin (BTC) price continues to consolidate in a range that provides a buying opportunity, while other major cryptocurrencies, such as Ethereum (ETH) and Ripple (XRP), appear poised for a potential price correction. ETH and XRP rose 10% and 5%, respectively, just after the US Securities and Exchange Commission (SEC) approved the Ethereum spot exchange-traded fund (ETF).
Bitcoin Price Eyes Rally
Bitcoin the price rose 8% on May 20, but such an impulsive move could lead to a retracement. As seen in the chart below, BTC is currently being rejected by the order block between $69,712 and $71,240, which also houses the weekly close at $71,280.
Secondary investors looking purchasing opportunities could do so at the following levels:
- The volume profile high nodes range which extends from $67,090 to $66,035.
- The 100-day exponential moving average (EMA) currently sits at $62,533, which coincides with the order block’s bullish range between $62,985 and $61,427.
If BTC bounces off the $62,533 level, it could rally 10% to the local high formed at $69,712.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators support the aforementioned rebound, which are firmly present above their respective average values of 50 and 0, suggesting that the bulls are in control.
BTC/USDT 1-day chart
On the other hand, if Bitcoin price closes below $58,271, it would invalidate this bullish thesis by producing a lower low in a longer time frame, leading to BTC crashing another 10% and reaching the previous support level of $52,400.
Ethereum price wants to rise
Ethereum price broke above the descending wedge trend and the 50 EMA level at $3,144 on May 20 and rose by 21%. Currently, ETH is rejected by the March 12 bearish order block from $3,980 to $4,093.
Ethereum price could rally to the top in two ways:
- A breakout above the daily bearish order block, extending from $3,980 to $4,093, tipping it into a support zone.
- ETH could move back into the major support zones of the 50-day EMA at $3,558, which roughly coincides with the bullish order block, extending from $3,393 to $3,119.
If the conditions mentioned above must be met, then the Ethereum Price could revisit its all-time high (ATH) of $4,868.
ETH/USDT 1-day chart
On the other hand, if the daily rate of Ethereum candlestick If the price closes below the $2,864 level, this would produce a lower low and signal a break in the market structure. This move would invalidate the aforementioned bullish thesis, potentially triggering an additional 8% crash from the previous support level of $2,600.
Ripple price expected to end its consolidation phase
Ripple Price is currently consolidating between $0.572 and $0.463 after a significant 33% decline in mid-April. This 46-day consolidation saw XRP form higher lows during the daily time frame, indicating a decrease in selling pressure.
If Ripple price breaks the $0.561 to $0.572 range, it could rally 8% to revisit the 61.8% Fibonacci retracement level at $0.621.
XRP/USDT 1-day chart
However, if Ripple price falls below the $0.463 range, then XRP will fall another 10% from its previous support at $0.419.