Blockchain

Bitcoin is currently trying to have another go at the $28,000 level. Here’s what on-chain data says regarding whether a retest can be successful.

Bitcoin On-Chain Signals Are Not All Positive Right Now

In a new post on X, the on-chain analytics firm Santiment has looked into a couple of on-chain indicators that may provide some hints about whether BTC can sustain any bullish momentum currently or not.

The first metric of relevance is the “supply on exchanges,” which keeps track of the percentage of the total Bitcoin supply that’s currently sitting in the wallets of all centralized exchanges.

When the value of this metric decreases, it means that withdrawals are taking place on these platforms right now. Generally, investors take out their coins to self-custodial wallets whenever they intend to hold onto them for extended periods, so this kind of trend can have a bullish effect in the long term.

On the other hand, the reverse trend implies selling may be going in the market as holders are depositing a net amount of the cryptocurrency to the exchanges at the moment.

Now, here is a chart that shows the trend in the Bitcoin supply on exchanges over the past few months:

From the graph, it’s visible that the Bitcoin supply on exchanges has observed a constant decline during the past month. This naturally suggests that the investors are transferring a net number of coins out of these platforms.

As mentioned before, if the investors are accumulating with these withdrawals, the price could feel a bullish impact, although it may only appear in the long term. Therefore, these outflows may not directly be relevant to the current price surge.

Another way to look at the net withdrawals, however, is that at the very least net deposits aren’t taking place currently. As is visible from the chart, the recovery rally at the end of August very quickly died out as investors transferred a large amount of BTC toward exchanges.

For now, it would appear that such a selloff isn’t taking place, which could potentially allow for the asset’s run to continue. There is another indicator highlighted in the graph, but unlike the supply on exchanges, this one doesn’t seem to be showing a positive trend.

This metric is the “daily active addresses,” which keeps track of the unique number of addresses that are participating in transaction activity on the blockchain. This indicator has now plunged toward the lowest levels since late August, implying that user interest in the asset is low currently.

Historically, rallies have only been sustainable when they have been able to amass a large amount of trader attention, as such moves typically require a high amount of fuel. At present, the current recovery move lacks such investor activity.

On top of this, the $27,900 level is currently a point of major resistance, as that’s where the average cost basis of the short-term holders lies, as CryptoQuant analyst Maartunn has pointed out.

All in all, it looks like a significant break above the $28,000 level could prove to be quite tricky for the cryptocurrency in the near future unless things can turn around fast in terms of user interest.

BTC Price

Bitcoin’s latest attempt may be ending in failure once again as its price has now retraced towards $27,600.

Reports from South Korea-based Yonhap News Agency have revealed that Upbit, one of the largest crypto exchanges in South Korea experienced over 159,000 hacking attempts in the first half of 2023 alone.

Upbit’s Hacking Attempts

According to the data from Upbit’s parent company Dunamu shared with the local news agency, the hacking attempts of the first half of 2023 indicate a 117% increase compared to the first half of 2022, and a 1,800% increase in hacking attempts compared to the second half of 2020.

The crypto exchange recorded 8,356 hack attempts in the second half of 2020, 34,687 in the first half of 2021, 63,912 in the second half of 2021, 73,249 in the first half of 2022, and 73,249 in the second half of 2022.

These hack attempts have increased over the years after the crypto exchange suffered a hack of 58 billion won ($50 million) in 2019. The exchange has since successfully fortified its security measures to prevent these hacks, and the exchange has not experienced any exploit since 2019.

“After the hacking incident in 2019, we took various measures to prevent a recurrence, such as distributing hot wallets and operating them, and to date, not a single cyber breach has occurred,” a Dunamu Official stated.

Some of these measures included an increased percentage of money retained in cold wallets by 70%. Hot wallets, which keep keys online and are more susceptible to breaches, are thought to be less secure than cold wallets, which store private keys offline.

This is because the majority of known cryptocurrency exchange hacking instances have occurred in hot wallets, especially the crypto hacks that occurred in September. One such example is Hong Kong-based CoinEx which suffered a $70 million hack in September 2023, and Mixin Network which suffered a $200 million hack, among others.

Due to the significant increase in cryptocurrency hack attempts in South Korea, the country’s Representative Park Seong-jung has called upon the South Korean government to take considerable measures to handle the issue.

“The Ministry of Science and Technology must conduct large-scale whitewashing mock tests and investigate information security conditions in preparation for cyber attacks against virtual asset exchanges where hacking attempts are frequent,” Representative Park said.

Upbit recently experienced an issue in late September 2023, where the crypto exchange was unable to identify a fake token, “ClaimAPTGift.com, present in 400,000 Aptos wallets. This led to the suspension of Aptos token services.

Compilation Of Crypto Funds Stolen In September

September 2023, was a nightmare for certain crypto exchanges as about $332 million in crypto assets were stolen from certain crypto exchanges in September alone.

Blockchain security firm Certik took to their official X handle in late September to share the compilation of the crypto hacks that occurred in the month alone and how much was stolen from these incidents.

The stolen funds accounted for exploits, exit scams, and flash attacks. However, exploits accounted for the most, with over 98% ($329.8 million) of the total amount stolen in that month, while exit scams and flash attacks accounted for the rest.

The rapidly evolving crypto market is set to witness yet another milestone as Deribit, the world’s preeminent crypto options exchange, prepares to launch options contracts for XRP, Solana (SOL), and Polygon (MATIC). Given the dominating position of Deribit in the options sphere, this inclusion could have noteworthy ramifications on the pricing dynamics of XRP.

Deribit To Debut XRP Options

Deribit, having established itself as the leading crypto options exchange both in terms of trading volume and open interest, is not letting the recent dip in digital-asset volatility deter its expansion endeavors. As reported by Bloomberg, the exchange is poised to roll out options contracts for the XRP token in January.

This move, announced by Chief Commercial Officer Luuk Strijers, will augment the platform’s offering which until now has been focused mainly on Bitcoin, Ether, and USD Coin options. The choice might be influenced by financial interests and prevailing market conditions. Trading volumes for crypto derivatives declined to roughly $1.5 trillion in September, down from about $2 trillion earlier in the year, affected by reduced prices and volatility relative to the highs of 2021.

Further solidifying its strategic vision, Deribit is not just limiting itself to options expansion. The Panama-based giant has disclosed plans to transition its operations to Dubai, a more crypto-receptive jurisdiction, following the attainment of necessary licensing. Parallel to this, the firm intends to bolster its workforce by approximately a dozen, adding to its current roster of 115.

Strijers expressed the inherent challenges in timing new product launches given the current market sentiment. “Is this the best environment to launch new products or should we defer?” he reflected, but remained optimistic about potential volatility upticks post the January launch.

Impact On The Price

With an overwhelming 85% market share in options trading, the influence of Deribit is unmistakable. The rest of the market is shared by competitors like OKX, Binance, and Bybit. A considerable 85% of the volume flowing through Deribit originates from institutional clientele. Therefore, the addition of XRP options on such a dominant platform is inevitably going to steer substantial attention toward XRP’s pricing dynamics.

Options, by design, provide traders the privilege (without an obligation) to buy or sell the underlying asset at a preset price until a specific date. This can have multifaceted implications for the underlying asset. XRP, as it gets intertwined with the options mechanism, might witness higher short-term volatility in its pricing, particularly around the expiry of these contracts.

“Quarterly expiries are typically the most significant, in terms of volume and value,” highlighted Strijers in a recent discourse. Drawing parallels with Bitcoin, it’s plausible that XRP might undergo amplified volatility as these options contracts approach their expiration, especially at quarter-end, depending on the volume of XRP options being traded.

Conclusively, with Deribit’s unassailable stature in the options space and the inherent nature of options contracts, the induction of XRP options might very well become a pivotal point in XRP’s pricing journey. Traders, especially those engaged in XRP, will need to brace themselves for the nuanced challenges and opportunities this integration brings forth.

At press time, XRP was trading at $0.4994 after briefly falling to $0.4880.

Shiba Inu (SHIB) investors have been caught in a whirlwind of uncertainty for the past month as the cryptocurrency’s price has stubbornly clung to a narrow range between $0.0000075 and $0.000007.

This protracted period of stagnation has left traders and enthusiasts alike scratching their heads, wondering when the next significant move might occur.

The current SHIB price, as reported by CoinGecko, hovers at $0.00000715, representing a modest 1.4% decline over the last 24 hours. Over the span of seven days, the meme coin has dipped by nearly 6%, indicating a gradual erosion of value. 

This pattern of price fluctuations within such a confined range underscores a lack of decisive action from both buyers and sellers, painting a picture of market ambivalence.

Implications Of A Range-Bound Market For Shiba Inu

One can’t help but wonder about the implications of this seemingly stuck range. Given the broader crypto market’s recent slump, it wouldn’t be surprising to see SHIB test the lower echelon of this range, potentially signaling an extension of its bearish undertones.

With the larger market sentiment in a state of flux, SHIB’s fate remains intertwined with the broader crypto landscape.

The ongoing downtrend in SHIB’s price can be visually traced to the formation of a falling wedge pattern on the weekly chart. This pattern is characterized by two converging trendlines that serve as dynamic resistances and supports.

While such patterns can sometimes hint at an impending bullish breakout, the prevailing market sentiment suggests that investors should remain cautious and prepared for any outcome.

Declining Whale Activity: What Does It Mean?

Another noteworthy development in the SHIB ecosystem is the decline in large network transactions. The number of significant transactions on the SHIB network has dwindled to a mere 20, marking one of the most inactive periods for the meme coin, especially concerning the activity of its large holders. Several factors could be contributing to this sudden drop in whale activity.

One of the potential reasons might be the waning interest in highly volatile assets like SHIB, particularly as Bitcoin’s dominance continues to rise within the crypto sphere. As the flagship cryptocurrency asserts its dominance, many investors appear to be realigning their portfolios, moving away from riskier assets to more established ones.

This shift in investor sentiment could explain the reduction in significant SHIB transactions as market participants seek more stability in their cryptocurrency holdings.

The formation of a falling wedge pattern and the decline in large network transactions underscore the challenges facing SHIB’s price trajectory. SHIB holders and enthusiasts must remain vigilant and adaptable to navigate the ever-changing tides of the digital asset market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

In the past, many have argued whether or not the XRP token was deflationary or not. In support of the former, pro-XRP crypto analyst Panos Mekras has provided data that suggests that the token has deflationary characteristics. 

Number Of Tokens Burned So Far

In a tweet shared on his X (formerly Twitter) platform, Mekras referenced another tweet showing that over 11 million tokens had been burned. This stat undoubtedly suggests that the token is deflationary since its total supply has decreased over time due to the burn mechanism.

However, another X user (@hasen_van) argued that the token was only deflationary in “respect to all XRP in existence” and that the token will continue to be inflationary as long “as Ripple keeps on selling into the open market.”

true with respect to all XRP in existence, but from a holders point of view – given that mostly all exchanges are using circulating supply (x price) to measure market cap, XRP is inflationary as long as ripple keeps on selling into the open market. #fridayfacts

— VanHasen (@hasen_van) October 6, 2023

In response, Mekras tried to correct the belief that some XRP tokens were not yet “in existence” as he stated that XRP’s total supply of 100 billion has existed since “day 1,” meaning that 100% of its supply has been circulating from the beginning and some XRP tokens cannot be classified as ‘non-existent’ yet. 

This debate seems to stem from the fact that Ripple has an escrow system in place. As such, some (like VanHansen) believe that the XRP in escrow lockups does not fall under its circulating supply and that this escrow system affects XRP’s deflationary status. However, people like Mekras argue that the escrow system doesn’t change the fact that the token is deflationary.

VanHansen further argued that the token cannot be deflationary (except technically) as XRP’s circulating supply gets inflated every time “Ripple releases XRP from the escrow.” Both sides seemed to look at it from different angles, with Mekras abiding by what deflationary meant in the strict sense while VanHansen was trying to provide a context. 

Is XRP Deflationary Or Not?

It is worth mentioning that the XRP Ledger doesn’t exactly have a built-in mechanism to decrease the token’s total supply, unlike some other networks. For instance, Ethereum implemented the London hard fork, which introduced a fee-burning mechanism with some Ether burned immediately after processing a transaction.

Related Reading: When Are AMMs Coming To XRP Ledger? Ripple CTO Gives Clear Answer

However, in XRP’s case, these token burns have occurred coincidentally rather than being a deflationary model on the network. In July, an engineer at Ripple explained that the monumental increase in the burn rate was mostly because of the XRPL account deletions. He mentioned that 2 XRP are usually burned when an account is deleted. 

He further noted that 85,556 old accounts on the Ledger were deleted in June, which led to over 100,000 XRP being burned. Hence, the burned token figure rises every time an account is deleted.

Bitcoin price analysts are pointing to a combination of high timeframe indicators that suggest the bear market for the leading cryptocurrency may be over, hinting at an impending upward surge.

TechDev, a prominent crypto analyst known for insightful market analysis, recently shared a compelling perspective on social media platform X. Drawing parallels to historical trends, TechDev contends that Bitcoin is currently in a familiar position, reminiscent of the preludes to the 2016 and 2020 bull markets.

Bitcoin Price Analysis: Volatility Contraction Signals Imminent Breakout

To illustrate this perspective, TechDev presented a chart featuring monthly candles, Bollinger bands, and a specialized indicator showcasing the logarithmic width between the bands in relation to the 200-month moving average. What is particularly intriguing about this chart is how Bitcoin’s Bollinger bands, which gauge relative volatility, have significantly contracted, implying a forthcoming breakout to the upside.

What #bitcoin has looked like before heading north… pic.twitter.com/aDCCAKSDli

— TechDev (@TechDev_52) October 6, 2023

This influential analyst further points out that Bitcoin is not alone in its quest for a bullish breakout; the broader altcoin market is also in contention. To make this comparison, TechDev references the “OTHERS” chart, measuring the collective market capitalization of all cryptocurrencies except Bitcoin and Ethereum (ETH).

In TechDev’s analysis, Bitcoin has forged crucial support levels at the inception of a long-term bullish momentum. Simultaneously, the “OTHERS” index has managed to break through a long-standing downward resistance. These developments collectively indicate that both Bitcoin and the altcoin market are primed for significant moves, potentially marking the end of the bear market phase.

As of the latest data from CoinGecko, Bitcoin’s price stands at $27,916 with a 24-hour price movement of 0.0% and a marginal 0.1% decline over the past week. This relative stability suggests that investors are holding their positions, awaiting the anticipated breakout.

Whale Activity Sparks Speculation

Meanwhile, in a surprising turn of events, a dormant Bitcoin address that had remained inactive for three years suddenly sprung back to life. Approximately 5,000 Bitcoins, valued at around $140 million, were transferred from this address. Notably, this substantial transfer was divided among three different addresses, as highlighted by PeckShield, a renowned blockchain security firm.

#PeckShieldAlert A dormant $BTC address 1LH1dY…ztTz (which has been inactive for 3 years) has transferred ~5K $BTC (~$140M) to 3 addresses

bc1q5rpq5wppf5tua2yd97nscp8gpz8fq0w740g22c

34aed6ryXt6ZCHv6k2WPiyy7ap5VbyHr8D… pic.twitter.com/kLj1SeEQSh

— PeckShieldAlert (@PeckShieldAlert) October 8, 2023

The implications of this significant whale movement on Bitcoin’s price remain to be seen. Such sizeable transactions often draw attention and can have varying effects on market sentiment. Traders and investors will be closely monitoring how this unexpected development plays out in the coming days and weeks.

The convergence of multiple high timeframe indicators suggests that Bitcoin may be on the cusp of a bullish resurgence, reminiscent of previous market cycles.

As Bitcoin continues to vie for an upward breakout alongside the broader altcoin market, the crypto community eagerly anticipates the potential end of the bear market and the start of a new phase in the digital asset landscape. 

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from The Drive

As the crypto community’s anticipation heightens for the upcoming Bitcoin halving, Changpeng Zhao (CZ), CEO of Binance, recently elucidated his observations around the historical patterns tied to this quadrennial event. Highlighting the evolving sentiments and speculations, CZ spotlighted the dominant themes before and after the halving events.

CZ observed that the preceding months to the halving are generally characterized by heightened discourse, diverse sentiments, and amplified expectations within the cryptocurrency sphere. “The few months leading up to the Bitcoin halving, there will be more and more chatter, news, anxiety, expectations, hype, hope, etc.,” he stated.

Addressing the commonly held belief that Bitcoin’s price will witness an immediate uptick post-halving, CZ dispelled such notions based on historical patterns. “The day after the halving, the Bitcoin price won’t double overnight. And people will be asking why it didn’t,” he remarked, addressing the immediate aftermath expectations.

While the short-term reactions post-halving may be tempered, CZ shed light on a longer-term trend where Bitcoin often reaches new all-time highs (ATHs) within the year that follows. In reference to the market’s ability to quickly transition from skepticism to marvel, he quipped, “People have short memories.”

However, CZ urged caution, emphasizing that historical patterns should not be construed as definitive indicators for future behaviors, noting, “Not saying there is proven causation. And history does NOT predict the future.”

A More In-Depth Analysis Of Bitcoin Halving

As Bitcoinist reported, renowned crypto analyst Rekt Capital recently published an in-depth analysis of the Bitcoin halving, offering a more granular view of the potential phases surrounding the event which is only 197 days and a few hours away according to Binance’s estimates.

Reflecting on historical patterns, the analyst suggested a possible deeper retrace for Bitcoin in the 140 days leading up to the halving. Drawing historical parallels, Rekt Capital emphasized, “You can debate whether 2023 is more like 2015 or more like 2019… Doesn’t change the fact that BTC retraced -24% in 2015 and -38% in 2019 at this same point in the cycle (i.e. ~200 days before the halving).”

Anticipating market dynamics as the halving nears, Rekt Capital postulated that roughly 60 days before the event, historically a pre-halving rally will likely emerge. This phase, marked by investor enthusiasm and elevated expectations as CZ puts it, is often characterized by buying into the halving anticipation.

But this enthusiastic phase doesn’t last. Around the halving event, the market often shows pullback behavior under the motto “buy the rumor, sell the news”. Highlighting this trend, the analyst cited the -38% dip witnessed in 2016 and the -20% decline in 2020, moments when the market re-evaluated the halving’s short-term implications.

Subsequent to this, Rekt Capital predicts a multi-month re-accumulation phase, often marked by investor fatigue due to stagnation. However, breaking out of this phase typically heralds Bitcoin’s entry into a parabolic uptrend, potentially culminating in new all-time highs.

At press time, BTC traded at $27,904.

XRP has been in the spotlight recently as it exhibits intriguing price dynamics. Amidst the turbulent waters of the crypto market, XRP seems to be carving out a path towards a significant upswing. Early last week, it faced yet another pullback from the stubborn resistance level at $0.55, a steadfast battlement that has thwarted crypto buyers repeatedly in the past two months.

The $0.55 resistance level has proven to be a tough barrier for XRP enthusiasts, with four unsuccessful attempts to breach this significant threshold. Each time, rejection candles have punctuated the charts, underscoring the determination of sellers to maintain their defensive stance. 

However, amidst this persistent standoff, there is a glimmer of hope in the form of a steadily ascending support trendline, acting as a protective barrier against deeper price plunges. This intriguing interplay between resistance and support is indicative of the formation of an ascending triangle pattern, a potential sign of bullish continuation.

XRP’s Rejection Candles: The Formation of an Ascending Triangle

An ascending triangle is a technical chart pattern characterized by a rising support trendline and a horizontal resistance level. It suggests that as the price nears the apex of the triangle, buyers could regain their enthusiasm, potentially propelling the coin upwards and maintaining its lateral movement.

Currently, XRP is trading at approximately $0.517198 on CoinGecko, with a minor 24-hour decline of 1.0% and a seven-day loss of 1.2%. These fluctuations are part and parcel of the cryptocurrency market’s inherent volatility, and the formation of the ascending triangle adds an intriguing dimension to XRP’s price action.

1/ Extensive performance testing of the XLS-30 #AMM has now been completed.

XLS-30 is a proposed amendment as part of the rippled 1.12.0 upgrade. If adopted, it will bring automated swap, trading, and liquidity provisioning capabilities to the #XRPLedger.https://t.co/Cz1w76uc8c

— RippleX (@RippleXDev) October 6, 2023

In addition to the technical aspects, recent data from an XRP report has revealed a noteworthy surge in XRP’s active addresses. On October 8, active addresses surged to 24,400, a significant increase from the previous day’s figure of just 13,100. This surge indicates that over 10,000 additional users decided to engage with the XRP blockchain, a development that has caught the attention of market observers.

XRP’s Potential Evolution

The surge in active addresses may be linked to RippleX’s recent announcement. On October 6, RippleX, the developer arm of the Ripple network and the XRP Ledger (XRPL), confirmed the successful completion of performance testing for XLS-30 AMM (Automated Market Maker).

The journey of XLS-30 began around July, with the blockchain community proposing to enhance the XRP Ledger by introducing features to facilitate liquidity provision, trading, and automated swaps on XRPL.

For some industry participants, this development signifies that XRPL is evolving into a full-fledged decentralized finance protocol, potentially unlocking new possibilities for XRP and its community. XRP enthusiasts will undoubtedly be watching closely to see how these dynamics unfold.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from 9P Online

Litecoin price is struggling to gain pace above $66.40 against the US Dollar. LTC could revisit the $60 support before the bulls take a strong stand.

Litecoin is correcting losses from the $63 support zone against the US Dollar.
The price is now trading below $66 and the 100 simple moving average (4 hours).
There is a key contracting triangle forming with resistance near $65.50 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
The price could drop toward the $60 support before it starts a fresh increase.

Litecoin Price Signals Bearish Move

This past week, there was a fresh decline in Bitcoin, Ethereum, Litecoin, and other altcoins against the US Dollar. LTC price formed a top near $68.40 before it started a fresh decline.

The price traded below the $66.40 and $65.00 support levels. It retested the $63.00 support zone. A low was formed near $63.01 and the price is now attempting a fresh increase. There was a move above the $65.20 resistance.

The price spiked above the 50% Fib retracement level of the downward move from the $68.38 swing high to the $63.01 low. Litecoin is now trading below $66 and the 100 simple moving average (4 hours). There is also a key contracting triangle forming with resistance near $65.50 on the 4-hour chart of the LTC/USD pair.

On the upside, immediate resistance is near the $65.50 zone. The next major resistance is near the $6.40 level. It is close to the 61.8% Fib retracement level of the downward move from the $68.38 swing high to the $63.01 low. If there is a clear break above the $66.40 resistance, the price could start another strong increase.

Source: LTCUSD on TradingView.com

In the stated case, the price is likely to continue higher toward the $68.40 and $70 levels. Any more gains might send LTC’s price toward the $75 resistance zone.

Downside Thrust in LTC?

If Litecoin price fails to clear the $66.40 resistance level, there could be a fresh decline. Initial support on the downside is near the $63.00 level.

The next major support is forming near the $60 level, below which there is a risk of a move toward the $58.00 support. Any further losses may perhaps send the price toward the $55 support.

Technical indicators:

4-hour MACD – The MACD is now losing pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is still below the 50 level.

Major Support Levels – $63.00 followed by $60.00.

Major Resistance Levels – $66.40 and $68.40.

Ethereum price is slowly moving lower toward the $1,600 support against the US dollar. ETH remains at risk of more losses unless it clears $1,650 and $1,665.

Ethereum is struggling to stay above the $1,600 support zone.
The price is trading below $1,640 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it clears the $1,650 and $1,665 resistance levels.

Ethereum Price Holds Support

Ethereum made another attempt to gain strength above the $1,650 resistance. ETH failed to settle above the $1,650 level, struggled to clear $1,665, and underperformed vs Bitcoin.

A high was formed near $1,664 before the price saw a fresh decline. It retested the $1,620 support. A low has formed near $1,617 and the price is now attempting another recovery wave. There was a minor increase above the $1,625 level.

Ethereum is now trading below $1,640 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support near $1,620 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,640 level or the 100-hourly Simple Moving Average. It is close to the 50% Fib retracement level of the recent decline from the $1,664 swing high to the $1,617 low.

The next major resistance is $1,650 or the 76.4% Fib retracement level of the recent decline from the $1,664 swing high to the $1,617 low. The main resistance is still near the $1,665 level. A close above the $1,665 resistance might send the price toward the key resistance at $1,750.

Source: ETHUSD on TradingView.com

To start a decent upward move, Ether must settle above the $1,720 and $1,750 levels. The next key resistance might be $1,850. Any more gains might open the doors for a move toward $1,920.

More Losses in ETH?

If Ethereum fails to clear the $1,665 resistance, it could continue to move down. Initial support on the downside is near the $1,620 level. The next key support is $1,600.

The first major support is now near $1,585. A downside break below the $1,585 support might start another strong decline. In the stated case, the price could revisit the $1,540 level. Any more losses may perhaps send Ether toward the $1,500 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,665