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Ethereum (ETH) Climbs Back Above $3,000, Massive $70,000 Bitcoin (BTC) Battle Ahead, Cardano (ADA) About to Face Its Biggest Test

Published 04/22/2024, 08:30 PM
Updated 04/23/2024, 12:00 AM
Ethereum (ETH) Climbs Back Above $3,000, Massive $70,000 Bitcoin (BTC) Battle Ahead, Cardano (ADA) About to Face Its Biggest Test

U.Today - ETH ascends past the $3,000 milestone, which changes the sentiment around the second-biggest cryptocurrency back to bullish. This rebound has seen it spring from the 100-day Exponential Moving Average (EMA), a sign that bullish sentiment might be creeping back onto the market.

However, despite the price hike, there is a noticeable decrease in volume. This dropping interest from traders signals a warning that the current uptrend might not have the momentum to push through the significant resistance levels ahead. One such level to watch is the 50-day EMA, which has previously acted as a barrier for price advances.

ETH/USD Chart by TradingViewZooming in on the daily chart, we see that Ethereum has recently deviated from an ascending channel, indicating a potential shift in trend. While such breakouts can often lead to more volatile moves, the question remains whether this is a temporary detour or the start of a new path.

Support levels have formed around the $2,900 region, where the 100-day EMA lies, serving as a springboard for the recent bounce. On the flip side, there is visible resistance at the 50-day EMA, hovering near the $3,200 mark. This moving average may serve as the next battleground between bears and bulls.

Looking forward, if Ethereum can sustain its current level and possibly push past the 50-day EMA, it could pave the way for a renewed bullish phase. The critical test will be whether it can ignite enough volume and buyer interest to break past these looming resistance points.

Is Bitcoin ready?

Bitcoin gears up for another round in the ring, price data shows. The digital gold has recently cut through the 26-day Exponential Moving Average (EMA), which acts as a gauge for short-term price momentum. This move is more than just numbers changing; it is a sign that Bitcoin might be getting its second wind.

The next big showdown is with the 50-day EMA. A break above this average could be the bell that signals a rally cry for Bitcoin bulls, setting the stage for a potential climb toward the all-time high of $100,000. But let's not get ahead of ourselves — the road there is fraught with trials and tribulations.

The post-halving period seems to be playing its part well, aiding in the asset's recovery and resilience. With the price now hovering near $63,000, the community whispers about the next psychological barrier: the $70,000 mark.

Looking at the chart, we see that if the bulls keep pushing, and we cross the 50 EMA, the road to $70,000 could become less of a dream and more of a reality. On the flip side, should Bitcoin take a breather and the bears step in, there is robust support around $59,000, which has previously acted as a strong foundation for the price.

The $100,000 milestone remains a distant star, however, considering the amount of liquidity needed to reach that threshold. The future of Bitcoin depends on many factors, and on the current market, it is difficult to foresee.

Cardano's surge

Cardano is approaching the 200-day EMA — a line that could dictate its trajectory in the short term. Historically, the 200 EMA has served as a benchmark for bullish or bearish market sentiment, and for ADA, it is a moment of truth.

ADA's price moves around $0.50, which it has recently breached. This level is now shaping up to be a key support area. Should ADA sustain above it, the focus shifts to whether it can maintain upward momentum.

Conversely, if ADA fails to hold this ground, the next level of support lies at $0.44, the previous point of reversal and the local low. This level is crucial, as it is where ADA last found strong buying interest, allowing it to pivot and climb.

However, the declining volume accompanying ADA’s price movements may cause trouble. Typically, ascending prices paired with descending volume can indicate a lack of commitment from buyers, raising the potential for a pullback.

This article was originally published on U.Today

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