Ethereum
How far can Bitcoin and Ethereum crypto fall this week?
After the massive rally that started last September, the crypto market experienced a collapse in the second quarter of 2024. With Bitcoin and Ethereum prices facing a healthy correction over the past few weeks, the bulls are taking a rest of exhaustion.
Currently, the BTC Price is down 15.59% from the all-time high of $73,794 and ETH is down 18.15% from the yearly high of $4,093. Likewise, the crypto market is down 18.77% from the yearly high of $2.721 billion reached in March 2024.
As the crypto market correction continues, will falling Bitcoin and Ethereum lead to new lower formations? Or will cryptocurrency prices receive strong support to rebound?
Bitcoin under correction eyes $60,000
With a bearish reversal of the dominant resistance trendline, the BTC Price fell 12.43% in the last 18 days. The fall breaks below the 50-day EMA and leads to a new secondary resistance trendline.
While the crypto market is in the correction phase, BTC price continues to resonate above the $60,000 support and overhead trendline. This extends the flag configuration but weakens the possibility of escape.
Currently, Bitcoin price is trading at $62,219 with an intraday decline of 1.50%, creating another bearish candle. Additionally, over the past 21 days, CryptoQuant data shows a long liquidation worth $382 million.
As the crypto price declines, the pressure on the $60,760 support increases. In the event of a breakdown, BTC price may test the 200-day EMA at $57,971.
However, the chances of a reversal are high with the bullish divergence as the RSI line approaches the oversold zone. With this reversal, Bitcoin price may soon break above the downtrend line and surpass the 50-day EMA.
Therefore, a bullish reversal may reach the $68,823 mark.
Ethereum Falls to $3,000
Amid crypto market plunge, falling wedge breakout has recovered Ethereum takes a bearish step back. The sudden increase in supply near the psychological $4,000 mark aligns with the broader stock market crash.
The ongoing pullback continues in a range-based trend, with increased supply leading to outages. Furthermore, the ETH Price a break below the 50D EMA leads to a decline and warns of a death cross if the fall continues.
However, in the daily chart, a long-term support trendline is ready to provide a bullish return. Additionally, the 200-day EMA aligns, increasing the chances of a reversal for the crypto.
Crypto Market Weakness Visible in ETH/BTC
In the ETH/BTC weekly chart, a downtrend channel dominates the trend, with a death crossover being the bearish sign of a moving downtrend. With this technical setup, Ethereum’s weakening position against Bitcoin intensifies.
As Ethereum, the leading altcoin, shows signs of weakness, this could have a ripple effect on the crypto market. A bearish continuation in the descending channel can lead to a loss of confidence among investors, causing capital to shift into Bitcoin, or even out of altcoins.
How far will cryptocurrency prices fall?
After the bearish week, Bitcoin and Ethereum prices are approaching the crucial support levels of $60,000 and $3,000. Therefore, a fall below these critical levels will prolong the bearish continuation. However, technical indicators in high demand at these crucial support levels could lead to a bullish reversal in the crypto market.
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