Bitcoin, Ethereum, XRP Forecast: Key Indicator Halts Ethereum ETF Rally
- Leading cryptocurrencies encounter selling pressure near 200 moving average as enthusiasm surrounding futures-backed Ethereum ETF launch disappoints.
- Bitcoin retraces after breaking out from symmetrical triangle, support at $25,000; resistance at $28,800.
- Ethereum breaks above symmetrical triangle before sellers arrive, support at $1,500; resistance at $1,820.
- XRP breaks out from symmetrical triangle before retracing, support at $0.46; resistance at $0.61.
Bitcoin, Ethereum and XRP Forecast Video for 03.10.23
Leading cryptocurrencies continued to show weakness in Tuesday’s Asian session after encountering substantial selling pressure Monday near the daily 200 moving average, capping a rally into the launch of several highly anticipated futures-based ether exchange-traded funds (ETFs).
The funds offered by by ProShares, VanEck and Bitwise Asset Management saw collective volume of just $1.92 million on their first day of trading, far short of the more than $1 billion in dollar volume turned over in a comparable futures-backed Bitcoin ETF launched back in October 2021. While the launch the Ethereum ETFs coincide with a prolonged crypto winter, the lack of investor enthusiasm toward the products highlight current sentiment in what is typically a bullish month for digital assets.
Elsewhere, rising interest rates also weighed on the asset class after the U.S. 10-year Treasury yield added another 11 basis points to reach a 16-year high of 4.69% on the back of better than expected manufacturing data. Below, use technical analysis to point out important levels to monitor in Bitcoin (BTC), Ethereum (ETH) and Ripple’s XRP (XRP).
Technical Analysis: Bitcoin, Ethereum and XRP
After breaking out above a symmetrical triangle on lackluster volume, Bitcoin’s price has retraced towards the pattern’s upper trendline after encountering sellers near the daily 200 SMA. A move higher latter this week could see a test of the $28,800 level, where the price finds resistance from a key horizontal trendline. Conversely, a failure to hold the triangle’s top trendline suggests a potential bull trap. This could trigger a reversal to longer-term support around the psychological $25,000 level.
Ethereum’s price also broke out above a symmetrical triangle before a cavalry of sellers arrived near the daily 200 SMA. A move higher from the pattern’s upper trendline could see bulls make a run towards major overhead resistance around $1,820. However, a breakdown below the triangle’s top trendline and moving averages on the four hour chart could give way to larger falls toward the $1,500 level.
XRP’s price has followed suit, breaking out above a symmetrical triangle before sellers delivered a prompt reality check. A rally from the moving averages and pattern’s upper trendline could kick start a move higher to resistance around $0.61. Alternatively, a breakdown from these levels could see bears make another attempt at the closely-watched $0.46 support level.