AssetsJun 12, 2023

Ethereum at its lowest level since March. Bitcoin and ETH test 200 EMA

The second largest cryptocurrency is facing a decline in its value.

Ethereum (ETH) currently found support at the 200-day exponential average (200 EMA), while Bitcoin (BTC) is moving a step away from this dynamic support. At the moment, all experts related to the cryptocurrency sector are asking themselves whether at the beginning of a week full of central bank decisions it will be possible to maintain the levels important for digital currencies?

Ethereum deepens the lows

The second oldest cryptocurrency, Ethereum, fell almost 5% during Saturday's session and closed the day at $1,752, reaching a low of $1,717, or 200 EMA. This means price levels that were last seen at the end of March. Last Monday brought a test of the moving average again, but so far it has been working very well as a support zone, giving buyers an opportunity to defend themselves.

At this point, it is worth adding that if the 200 EMA does not hold, then the next level of support will most likely show very low, at $ 1,500, i.e. at levels where ETH prices were last over a quarter ago.

From a theoretical point of view, the long-term average marks the boundary between a downtrend and an uptrend. So if it doesn't provide a more lasting rebound and return to $1775 resistance soon, Ethereum is technically likely to return to a bearish trend.

The declines in ETH quotations that we can currently observe, however, do not change the objective fact that analysts keep making quite bold forecasts of future prices of the second oldest cryptocurrency. In a recent series of tweets, Adam Cochran, a partner at CEHV, sparked a broad wave of discussion around Ethereum and made relatively convincing arguments that the ETH token could potentially go as high as $457,081.

Bitcoin one step away from 200 EMA

Unlike Ethereum, Bitcoin tested the March lows a little earlier. This is because it took place on June 5-6. Saturday's trading session also brought a slide down and tested the $25,420 level without any surprises. It is worth noting that this, however, did not deepen the lows that could be observed on the quotation charts in the first part of the previous week.

Now, one BTC coin costs $25,873, and the oldest cryptocurrency is still trading just above the 200 EMA. The valuation level oscillating around USD 25,000 is currently a fairly strong support zone, which could potentially provide an opportunity for buyers to rebound in the short term.

A recent report by popular digital currency analysis firm Santiment revealed that significant Bitcoin investors, commonly referred to as whales, have accumulated a spectacular volume of coins despite the recent 10% drop in the price of the oldest of the cryptocurrencies.