BTC declines, ETH dashes hopes for a long-term upswing

Ethereum’s recent price plunge has shattered hopes of a sustained uptrend. The cryptocurrency has fallen below its rising trendline, indicating a reversal of bullish momentum. Ethereum’s current price of approximately $2,400 is dangerously low for the second-largest cryptocurrency by market capitalization.

This breakdown has pushed the asset below the critical $2,500 support level, which has historically been a crucial zone for preventing further declines.
The declining volume accompanying this price drop is a further cause for concern. Lower trading volume during a price decline suggests diminished buying interest, potentially exacerbating the downtrend. The break below the ascending trendline is particularly worrisome as it signals the end of the recent rally that had buoyed investor sentiment. Ethereum may struggle to regain its footing in the near term, as the trendline now acts as resistance.

The change in market sentiment increases the likelihood of a prolonged bearish phase. Given Ethereum’s current price of around $2,400, traders and investors should be prepared for potential further downside.
Bitcoin’s recent price drop has also raised concerns about its long-term prospects. The cryptocurrency has fallen sharply, returning to the 200-day Exponential Moving Average, a key technical indicator. This move has shaken the confidence of traders who were expecting a sustained uptrend, suggesting an impending price correction or even a trend reversal.

A significant market wipeout of $200 million has further fueled investor worries about Bitcoin’s short-term viability. Such a decline in market capitalization could lead to increased selling pressure and a potential drop in price. The fact that Bitcoin has failed to maintain support above the 200-day EMA, a traditionally crucial level, is particularly alarming.

Moreover, Bitcoin’s failure to reach the coveted $70,000 threshold during this market cycle has further disheartened cryptocurrency enthusiasts. This level has been a key psychological target for traders and investors, and failing to achieve it indicates a slowdown in bullish momentum. The recent price action suggests that Bitcoin is currently in a risky situation, and the market may be transitioning from a bullish to a bearish phase.