Despite a recent uptick in cryptocurrency values over the past 24 hours, they have yet to recover from previous losses. With Trump taking steps regarding cryptocurrency policy, the question persists: why aren’t prices rising? The situation mirrors a 16% decline following an ETF approval, indicating a frustrating pattern for investors and traders alike.
What’s Next for Ethereum?
Ether has shown hesitance in gaining momentum, with some users on social media declaring it dead. Currently trading around $3,158, the largest altcoin has struggled to maintain its value above $3,410 for months. Technical formations suggest a deeper correction risk may be imminent.
Ali Charts highlights a pattern that has sparked debate among many investors.
“The head and shoulders pattern in ETH is gaining popularity. If this formation continues, any dip to $2,900 could present a buying opportunity, but keep your stop-loss between $2,700 and $2,500.”
Kyle shifts focus to ETH reserves.
“ETH reserves on spot exchanges peaked during the 2018 bull run and rose again with DeFi’s explosion in 2020-2021. However, reserves have declined since 2022, reaching historic lows by 2024. The decrease in supply may create upward price pressure; future gains might just be a matter of time.”
Bitcoin’s Volatility Continues
As this article is being prepared, BTC stands at $102,665, with weaker trading volume compared to yesterday. The persistent fluctuations in BTC have created an environment reminiscent of the November 2022 downturn, causing turmoil in altcoin markets. Short-sellers can profit easily from each upswing if they utilize a reasonable leverage ratio, which is discouraging.
Daan Crypto Trades suggests that as long as the bull market structure remains, the trend will continue and rise over time. The analyst warns that focusing on short-term timeframes is the worst action to take during a bull trend, sharing the following chart.
