Ethereum Back Above $2K After a Long Week of Turbulence as Altcoins Recover
Ethereum found support near $1,700 against the US Dollar and started a recovery wave, climbing above the critical $2,000 resistance zone. The second-ranked crypto by market cap had crashed 35%, sending it below the $2K level. At the time of writing, ETH is trading at $2,137.83, a 9% increase from yesterday.
A Look into ETH’s Price
After falling below the key $2,000 support zone, Ethereum retracted back to the $1,800 level. However, the bulls eventually took a break from the rally. The price started to rise after it fell below the $1,700 support zone. It moved above the key resistance levels between 1,900 and $1,800. An hourly chart of the currency pair shows there was a break above a significant bearish trend line.
Currently, the price is trading above the 50% Fib level of the decline from $2,550 to the low of $1,700. However, it is still below the 200 and the 100-hour simple moving averages.
The first major resistance level that bulls are looking to establish is around the $2,150 level. This level is close to the 61.8% Fib level of the decline from highs of $2,550 to lows of $1,700. If the price could close above this level, it could significantly increase.
BNB, ADA, SOL, and XRP are Recovering
Many cryptocurrencies rallied over the past 24 hours, with the total market capitalization of all major digital currencies rising by 13%.
BNB has bounced from the support zone at the $200 level. Currently, it is trading above the $300 resistance level. However, it could reverse lower and test lower boundaries of the range but is limited below the $250 level.
ADA rallied above $0.50 and tested the key resistance at $0.55. It then ran into the support at $0.50 and is now consolidating. The price could find bids at around $0.542, which is the next major resistance. After a week of losses, the stock managed to bounce back with a gain of 19% today.
Solana (SOL) rallied above the $50 level and is currently trading at an upper boundary of the range. The next resistance is around the $55 level, leading to a further rise. XRP managed to move above the $0.420 level. However, it failed to sustain its gains and is currently trading below the key resistance at the $0.465 level.
The rest of the altcoins are primarily in the green zone, with notable weekly gains seen in AVAX, MATIC, BCH, QNT, HBAR, and APE. APE is up 46% out of these, while FTM, GMT, and GALA are up to 50%-66%.
Looking Ahead
The fear and greed index, which measures anxiety and fear in the cryptocurrency market, fell by 2 points to 10 on Friday. Despite the optimism surrounding the market, it remains in extreme fear. It suggests that the current low levels might attract some ‘buy when you are scared’ buyers.
Recent market moves have also shown that crypto is vulnerable to other risk assets. As the Fed fights inflation, it’s unclear how it will affect the asset class. Despite its promising characteristics, such as its store of value, crypto is still considered a high beta asset. Notably, despite the current market moves, it’s still unclear if we’ll see a “decorrelation” soon.
