Markets

what lies ahead for Ethereum and other cryptocurrencies?

Published

11 months ago

14 May, 2024

Altcoin market blues: what lies ahead for Ethereum and other cryptos?

What factors are driving the downtrend of altcoins and when can we expect a trend reversal?

In the last month, the cryptocurrency market, in particular altcoinsfaced a prolonged recession, with many notable losses.

Ethereum (ET), the second largest cryptocurrency in market capitalizationit has lost nearly 10% of its value over the past 30 days, trading at around $2,960 as of May 13.

However, the ordinals (ORDER) was hit the hardest, falling 40% and now trading at just $36.80.

This market downturn is in line with global economic trends, such as recent decision by the Federal Reserve (Fed) to keep interest rates between 5.25% and 5.50%.

The Fed’s cautious approach to monetary policy to address inflation and economic growth may have created uncertainty among cryptocurrency investors, leading them to favor more established assets like Bitcoin (Bitcoin).

BTC has largely traded above $60,000 levels during this downturn, with BTC dominance even reaching a high of nearly 57% in April, a notable increase from last year’s levels of 45-46%. As of May 13, BTC’s dominance stood at over 55%.

BTC Dominance Chart | Source: TradingView

Additionally, the Fed’s announcement with regard to Its strategy of reducing bond holdings, slowing the pace at which it allows proceeds from maturing bonds to flow out without reinvestment, could point to potential economic challenges ahead.

This signal may have further reduced investor confidence in altcoins, diverting attention and capital away from riskier assets.

As the cryptocurrency market faces this crisis, the question arises: when will altcoins recover? Let’s explore.

What do the experts think?

Analysts have offered a variety of perspectives on the current state of the altcoin market. Here’s what they think

Patric H. | CryptotelligenceX

Patric H. remains bullish on the overall market, predicting a continuation of the bull market through mid-Q3/Q4 2024.

🚨 Contrary opinion: the fund has nothing to do with it.

May will be emotionally difficult for many #Bitcoin AND #Altcoins investors.

Over the next 2-6 weeks, we will see the final jolt before the breakout.

🧵Here’s what to expect in this turbulent phase.

— Patric H. | CryptelligenceX (@CryptelligenceX) April 30, 2024

However, it warns of a short-term turbulent phase, especially in May. He predicts a final shakeout in the next 2-6 weeks, possibly revisiting $52,000 for Bitcoin and $2 trillion for total market cap.

He attributes the delay in reaching the bottom to the lack of sufficient pain in the market, indicating that sentiment remains too euphoric.

Patric recommends monitoring the Fear and Greed Index for signs of a shift towards “fear.” He also said he is keeping an eye on the divergence in sentiment and trading volumes, which could hint at a potential trend reversal.

Benjamin Cowen

Benjamin Cowen draws parallels to the previous cycle, pointing out that ALT/BTC pairs tend to capitulate just before rate cuts. According to him, ALT/BTC pairs could drop another 40% from current levels in the coming months.

Last cycle, we saw #ALT /#BTC couples capitulate just before rate cuts.

Maybe this time it’s no different? This would mean that ALT/BTC pairs will drop another 40% from here over the next few months.

Short-term countertrends do not invalidate this view. pic.twitter.com/BK3VIrCBJ2

— Benjamin Cowen (@intocryptoverse) April 30, 2024

Cowen attributes altcoins’ continued struggles to declining social interest, comparing the current market movement to that of 2019.

Altcoins continue to struggle because social risk is collapsing. People just don’t seem to care.

The whole move still feels 2019-style to me. Social interest also collapsed just before the rate cuts arrived, and then the ALT/BTC pairs finally bottomed when the Fed changed direction. pic.twitter.com/SEKbLRMTaX

— Benjamin Cowen (@intocryptoverse) April 29, 2024

He points out that social interest has declined before rate cuts in the past, suggesting a potential bottom for ALT/BTC pairs coinciding with a shift in Fed policy.

Michael van de Poppe

Michaël van de Poppe notes that altcoins are experiencing a regular correction in USD valuations, but in BTC valuations they are declining sharply, approaching cycle lows.

THE #Altcoins market cap is undergoing regular correction (in USD valuations).

BTC valuations are way down and at cyclical lows.

Underestimation vs reality.

This is not the time to move away from cryptocurrencies, but to attack markets with higher risk. pic.twitter.com/h298e63ory

— Michaël van de Poppe (@CryptoMichNL) May 12, 2024

He suggests that this undervaluation presents an opportunity to attack higher-risk markets rather than moving away from cryptocurrencies.

What to get from it?

These analyzes suggest a cautious outlook for the altcoin market in the near term, indicating that further corrections may be coming.

However, they also indicate a possible bullish trend in the medium to long term. This means you should remain alert and flexible as the market evolves.

The next few weeks will be important for the altcoin market, with factors such as sentiment, trading volumes and external economic events likely to have key impacts.

Potential catalysts for market recovery

The cryptocurrency market is at a critical juncture, with potential catalysts that could restore normalcy and revive bullish sentiment.

An important development is the progress of the Financial Innovation and Technology for the 21st Century (FIT21) Act of the U.S. House, which goals bring regulatory clarity to digital assets.

If passed (could be in May itself), the bill could establish federal standards for digital assets, clarify the jurisdiction of regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and establish a regulatory framework for digital asset markets.

The cryptocurrency industry has long sought regulatory clarity, and the FIT21 Act could provide much-needed certainty to market participants and investors, potentially increasing confidence and investment in the sector.

Additionally, the bill’s provisions to allow secondary market trading of digital commodities and impose requirements on registered entities could improve market transparency and integrity.

Another potential market driver is the SEC’s impending decision on VanEck’s ETH spot exchange traded fund (ETF) applicationscheduled for May 23, 2024. A favorable decision could trigger an ETH price rally, similar to the ETF-led Bitcoin surge in early 2024.

Concerns remain regarding the SEC’s classification of ETH as a commodity or security, which could impact the approval of spot ETH ETFs.

Current sentiment surrounding the launch of spot ETH ETFs in the US is largely pessimistic, with concerns over regulatory uncertainty and the SEC’s stance under Chairman Gary Gensler.

Nonetheless, industry experts believe an ETH spot ETF will eventually get the green light, mirroring the path of BTC spot ETFs, which initially faced rejections before prevailing in an SEC lawsuit.

In the short term, a rejection of the spot ETH ETF could trigger greater price volatility and a decline in ETH prices as the market absorbs the news.

Meanwhile, regulatory clarity and approval of spot ETH ETFs could propel altcoin market recovery and bullish trends in the coming months.

ETH price analysis

As of May 13, Ethereum was trading at around $2,970. ETH has followed a downward trend, raising fears that it could fall below the $2,500 threshold.

ETH’s recent price trend has been bearish, with weekly opens lower than the previous week’s close, suggesting a lack of bullish momentum.

Altcoin Market Blues: What's Next for Ethereum and Other Cryptocurrencies? - 2

ETH Price Analysis | Source: TradingView

Over the previous 24 hours, the ETH/USD pair traded positively, breaking above $2900 levels, but facing solid resistance around the EMA50 at $2990. For a downtrend to resume, ETH needs to break below $2900, potentially heading towards the $2800 and $2620 levels.

On the other hand, a continuation of the rally and a move above $2,990 could lead to further gains up to $3,130 levels.

The expected trading range for ETH is between $2800 (support) and $3050 (resistance), with the trend forecast remaining bearish.

Analysis of ETH suggests that prices may face continued downward pressure, impacting other altcoins in the market as well.

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Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

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Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

9 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

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Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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