Amid the broader market crash, Ethereum slipped to lows below the $2,500 level and even failed to clear the 61.8% Fib retracement level
Ethereum price slipped to lows below the $2,500 level and even failed to clear the 61.8% Fib retracement level of the downward move from the $3,402 swing high to the $2,127 swing low. Notably, the large-cap altcoin formed a short-term declining channel with resistance at the $2,800 region on its hourly chart. The token has been hovering below its 100 hourly SMA and $2,880.
If the ETH token continues to decline and close below $2,359, it could extend its downtrend to test its weekly support at $1,905. Ethereum’s relative strength index is nearing the oversold territory, suggesting bearish dominance. Meanwhile, its MACD has signaled a bearish crossover, indicating an extension of a bearish trend. However, if the ETH crypto recovers, it could steer towards the $3,000 level to extend its recovery.
A strong weekly close above the $4,100 resistance could see ETH pull off a mega rally to reach a new all-time high of $7,000. This target is obtained by measuring the distance between the triangle’s lowest and highest point and forecasting it upward from a potential breakout level. Meanwhile, Ethereum saw increased buying activity following the market crash, with spot Ethereum ETFs recording net inflows of $83.60 million per Coinglass data. On the traditional crypto market, investors withdrew over 250,000 ETH tokens from exchanges in the last two days, according to CryptoQuant’s data.
XRP price eyes the $3.00 psychological level
Since the crypto market crash, XRP investors have realized nearly $2 billion in profits in the past three days. The sell-off was dominated by whales across the long-term and short-term holders, as indicated by spikes in the whales’ transaction count and Dormant Circulation. This triggered the XRP’s Weighted Sentiment to lows last seen in November. Its funding rates have also decreased to lows last seen in August. Notably, it’s crucial to point out that prices usually go in the opposite direction when such high negative sentiments drive the masses.
This could partly be why the XRP token staged a comeback, gaining over 30%. However, XRP bulls must strengthen their comeback. XRP’s open interest has failed to rise with the market recovery after declining from 2.05 billion to 1.50 billion XRP. This low interest suggests investors might be reluctant to hold a long position in the XRP token. Meanwhile, the total amount of liquidated long and short positions are $74.67 million and $28.28 million, respectively.
Notably, the altcoin is looking to reclaim the $3.00 psychological level. A successful close above this level could set the stage for a rally toward its seven-year high of $3.40. However, it faces a descending trendline resistance, which has been expanding since January 16. If the XRP token clears this resistance alongside the $3.40 level, the XRP coin could rally toward a new all-time high above $3.55. Its RSI and Stoch are pointing upward, with the latter climbing above its neutral level, indicating a rising bullish momentum.
