Ethereum Attempts Breakout From Multi-Month Downtrend, But Can ETH Hold $1,600?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Amid the latest market recovery, Ethereum (ETH) attempted to break out from its multi-month downtrend, leading some market watchers to suggest that a new rally could start soon. However, as price struggles to hold the $1,600 level as support, the cryptocurrency risks losing recent momentum. Related Reading Ethereum Breakout Eyes Key Resistance On Easter Sunday, the crypto market saw a positive end-of-week after jumping 4.2%. Bitcoin (BTC) closed the week above the $85,000 barrier for the first time this month, while Ethereum surged 5.4% to attempt to reclaim the $1,600 resistance for the third time in the past seven days. ETH closed the week around the $1,640 mark before climbing to $1,658 during Monday’s early hours. Amid this performance, the cryptocurrency attempted to break out of its multi-month downtrend for the first time. Crypto analyst Ted Pillows highlighted that Ethereum broke out of its descending resistance on Monday morning. According to the post, the cryptocurrency has been in a downtrend in the one-day chart since early February, retesting the trendline thrice over the past few months, but always being rejected. ETH retests multi-month downtrend. Source. Ted Pillows on X Its latest rejection from the descending resistance sent the cryptocurrency below the $1,700 mark, which fueled the bearish sentiment brewing toward ETH. The start-of-April retraces, driven by the ongoing tariff war between the US and China, further sent Ethereum to lower levels, hitting its two-year low below $1,400 and retesting the 2018 highs. The analyst noted that ETH could rally toward $2,000 during April’s last leg if the cryptocurrency holds the $1,600 support, which it hasn’t been able to do for most of the month. Is The ETH Bottom Close? Analyst Carl Runefelt also highlighted ETH’s downtrend breakout, affirming that it “might go absolutely parabolic starting from here.” According to Runefelt, the resistance breakout eyes the $3,000 mark, which was lost during the February retraces. However, Ethereum has lost its short-term momentum, retracing its 24-hour gains in the past few hours. Its price dropped below the $1,600 mark into the key $1,500 support level, trading around the $1,570-$1,580 price range. This retracement could hint that ETH’s recovery failed to gain strength, risking a drop to the current level’s lows. However, a bounce from this zone to hold the $1,650 mark could confirm the breakout and propel the cryptocurrency’s price toward $1,700-$1,800 resistance. Analyst Ali Martinez considers that ETH’s new rally won’t start again until it breaks through the $2,330 supply wall, where over 12.6 million addresses purchased around 68-63 million ETH. Related Reading Meanwhile, another market watcher suggested that Ethereum’s trading pair against Bitcoin is “the only chart to look at right now.” Crypto Fella affirmed that the bottom of the ETH/BTC chart is close, as it has reached its lowest level since 2020. Per the chart, the last time ETH/BTC dropped below the 0.022 mark, it hovered between the 0.016-0.022 zone for some months before bouncing toward its late-2021 high. As of this writing, Ethereum trades at $1,571, a 1% decline in the daily timeframe. Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum Price Suffers 77% Crash Against Bitcoin, On-Chain Deep Dive Reveals Reasons Why
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Despite rolling out a large number of upgrades and innovations, the Ethereum price continues to lag behind Bitcoin (BTC) by a wide margin. Reports reveal that ETH has suffered a staggering 77% price crash against BTC — a decline likely fueled by a mix of technical, macro, and sentiment-driven factors. Notably, On-chain analytics platform, Santiment has now pinpointed and broken down the key reasons behind these price struggles. Ethereum Price Nosedives Against Bitcoin On April 11, Santiment released a detailed report on Ethereum, highlighting its almost four-year underperformance and the reasons behind it. Ethereum, once revered as the cryptocurrency most likely to dethrone Bitcoin, has recently suffered a brutal price decline when measured directly against BTC. Related Reading According to Santiment’s on-chain data, Ethereum has crashed by approximately 77% against Bitcoin since December 2021. While the dollar value of ETH hasn’t completely collapsed, especially compared to other altcoins, the long-term BTC/ETH ratio still paints a gruesome picture for Ethereum holders. Source: Santiment on X Notably, Ethereum has also failed to recover anywhere near its November 2021 all-time high of $4,760. In contrast, Bitcoin has surged ahead, reclaiming much of its market dominance and outpacing ETH across almost every timeframe. This disparity has led many traders and former maximalists to compare ETH to a “shitcoin.” Even worse, various mid to low-cap altcoins have already outperformed Ethereum over the short, mid, and long-term timeframes, causing further embarrassment for the world’s second-largest cryptocurrency by market capitalization. Based on Santiment’s report, the ETH/BTC price ratio chart alone is enough to trigger doubt and uncertainty among long-term holders. Behind The Scenes Of Ethereum Price Struggles Beyond price action and market volatility, Santiment reveals that there are fundamental reasons for Ethereum’s sluggish performance over the years. Some of the major criticisms that analysts and traders have pinpointed include technical, sentimental, and regulatory issues. Related Reading Ironically, Ethereum’s Layer 2 solutions are one of the key drivers of its underperformance. L2 solutions like Arbitrum, Optimism, and zkSync are reportedly cannibalizing activity on the mainnet, taking investments from ETH while spreading investor attention thin. Secondly, Ethereum seems to struggle with complex roadmaps and communication, which has led to investor confusion. Major updates like The Merge and Shanghai have been difficult for investors to comprehend, making ETH feel less accessible than BTC. Thirdly, users remain frustrated by Ethereum’s relatively high gas fees and the slow rollout of key upgrades. This has pushed them toward more affordable and faster alternatives, significantly reducing adoption. Another primary reason for Ethereum’s crash against Bitcoin is ongoing regulatory concerns. Unlike Bitcoin, which has a more established legal precedent, Ethereum faces constant uncertainty about whether it could be labeled a security. Other points include ETH’s lack of investment appeal. While Bitcoin maintains the title as a stable digital gold, Ethereum appears to be caught in between, having no clear or attractive investment narrative. Moreover, newer blockchains like Solana and Cardano are also attracting a significant number of users with cheaper and faster solutions, ultimately pulling investments away from ETH. The final reason Santiment has identified for Ethereum’s long-term price descent is rising selling pressure. Post-upgrade withdrawals of stakes ETHs have created steady sell-side pressure, limiting growth and momentum compared to Bitcoin. ETH trading at $1,596 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Unsplash, chart from Tradingview.com
Solana Sentiment Hits 1-Year Low Amid Market Correction – Analyst Suggests Drop To $70
Este artículo también está disponible en español. Amid the market retrace, Solana (SOL) saw a massive correction that dragged its price to a five-month low. If SOL fails to reclaim its key support levels, some market watchers predict the altcoin risks further bleeding. Related Reading Solana Sentiment Plummets To Yearly Low On Monday afternoon, the crypto market continued the weekend bleeding after failing to hold its key support levels. In the past 24 hours, most cryptocurrencies have dropped to monthly lows amid the latest market correction. Bitcoin, the largest crypto by market capitalization, moved from the $96,000 mark to the range lows of its post-elections range before losing the $90,000 support for the first time since November. As the flagship crypto bled, Solana, one of the leading Altcoins this cycle, followed BTC’s steps. SOL dropped 12% from the $150 support, tapping the $140 level and dropping to $131 on Tuesday morning, its lowest price since September. Analyst Miles Deutscher pointed out that Solana’s sentiment has reached its lowest level in over a year. According to the post, the sentiment for SOL hasn’t been this low since the cryptocurrency first reclaimed the $100 mark at the start of 2024. Solana sentiment hits a one-year low. Source: Miles Deutscher on X It’s worth noting that market sentiment has shifted over the past few weeks, with several community members expressing increasing fatigue from the numerous Solana-based memecoin scams. After the Libra token crash, which saw over $100 million taken from investors, the market started to see capital rotation from Solana to Ethereum. At the time, SOL’s price dropped 12%, losing the $180 support zone and failing to reclaim it for the past week. Deutscher stated that Solana is “finally having its capitulation moment” after being a top performer throughout last year. He also implied that the capitulation suggests a rebound could be coming. Another 50% Drop Coming? Crypto analyst Jelle highlighted that Solana is registering a 50% drop from January highs and has retraced to a key weekly level. The $130 and $140 zone was a key support level throughout the 2021 all-time high (ATH) breakout and the 2024 rally. Jelle also suggested that holding this area will be key for Solana’s performance, as the upcoming token unlock, scheduled for March 1st, will affect its price. Ali Martinez commented on SOL’s recent performance, noting that SOL’s trading pair against BTC resembles ETH/BTC. According to the analyst, the SOL/BTC chart is starting to look like Ethereum’s trading pair against BTC’s past price action. Related Reading If the pattern continues, SOL/BTC could be poised for a 50% drop to 0.0008, sending Solana’s price to the $70 region. Meanwhile, Altcoin Sherpa considers the $90-$125 region a “good area overall” to purchase, as he doesn’t believe that Solana is “dead.” The analyst added that SOL will likely recover from the lows but expects some volatility. As of this writing, SOL trades at $141.36, a 45% decline in the monthly timeframe. Solana’s performance in the one-week chart. Source. SOLUSDT on TradingView Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum Holds ‘Bounce Or Die’ Level – Rebound To $4K Near?
Este artículo también está disponible en español. Amid the market corrections, Ethereum (ETH) has retested a key multi-year support level, suggesting that a bounce to $4,000 could be near. However, some market watchers noted that ETH has tapped an “interesting level” against Bitcoin, which could signal the time to celebrate is not here yet. Related Reading Ethereum Holds Key Support Level Over a week ago, the crypto market saw its biggest retrace in months, sending Bitcoin and most cryptocurrencies to monthly lows. Ethereum dropped to $2,120, hitting its lowest price range since the early August correction. Since then, ETH has moved within the $2,600-$2,830 price range, struggling to turn the range’s upper level into support for the past week. Yesterday’s market pullback, seemingly fueled by Donald Trump’s latest tariffs on steel and aluminum, saw Ethereum drop below the $2,600 support, a key resistance level before the Q3 2024 breakout. On Monday, the King of Altcoin reclaimed the recently lost support, trading above the $2,650 mark throughout the morning. Some market watchers noted that ETH remains in its “bounce or die” multi-year support. Ethereum retests its multi-year uptrend line. Source: Crypto Yoddha on X Ethereum has been in an uptrend support since 2022, retesting this trendline four times before. Each retest has been followed by a rebound to a key horizontal level in the following weeks. ETH faced resistance at the $1,900-$2,200 zone during the 2022 retests of the ascending trendline before breaking out. Meanwhile, the 2023 and 2024 rebounds saw ETH bounce from the uptrend support to face resistance at the $4,000-$4,100 levels. Market observer and investor Ted Pillows noted that Ethereum held its uptrend support since May 2023 after the recent retest, which could indicate that a rebound is near. If the pattern repeats, the cryptocurrency could break past the $4,100 resistance level and aim for new highs soon. ETH Price Action Resembles 2020-2021 Rally Ted also pointed out that ETH’s recent “capitulation candle” looked like March 2020’s. He explained that Ethereum recorded a major dump that led investors to believe the altcoin’s rally was over. However, the cryptocurrency bounced back, resulting in a “long-term structure breakout for Ethereum.” According to analyst Crypto Jelle, ETH currently trades in a multi-year ascending triangle, and the recent performance suggests that the next move “will be the real deal.” He noted that Ethereum’s next attempt would be the fourth retest of the $4,000 mark this cycle, which could “be the charm” as the resistance level weakens. A breakout and reclaim of this key resistance would potentially lead to a retest of the $4,878 all-time high (ATH). Related Reading Daan Crypto Trades highlighted that the ETH/BTC trading pair moved back to its 2016-2020 levels when it hovered between 0.023-0.036. The range’s upper zone served as a key resistance throughout these years, propelling ETH to ATH and local highs against BTC once turned into support. The trader considers that ETH/BTC could sit within this level “for quite a while” and that “the time to get excited again is when this retakes 0.036 at the very minimum.” As of this writing, Ethereum trades at $2,659, a 1.2% increase in the daily timeframe. Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView Featured Image from Unsplash.com, Chart from TradingView.com Source link