Ethereum Hits 0 in Volatility, Bitcoin Oversold? New Uptrend Born, XRP: You Can Smell Recovery
The post Ethereum Hits 0 in Volatility, Bitcoin Oversold? New Uptrend Born, XRP: You Can Smell Recovery appeared on BitcoinEthereumNews.com.
After covered the poor state of the market in our most recent review, things turned around: Bitcoin might be gearing up for another surge, XRP is regaining solid market positions and Ethereum is entering a hiatus after being pushed down for days. Ethereum sleeping? The second-largest cryptocurrency in the world, Ethereum, is dealing with an odd and worrisome development: a disastrous decline in volatility. With ETH firmly settling around the $4,295 mark following weeks of quiet activity, price swings have all but stopped. Such a lull is not good for a market that depends on momentum. ETH/USDT Chart by TradingView Because of its high trading volume and steady market participation, Ethereum has a history of experiencing abrupt price swings, both upward and downward. ETH’s daily candles are getting smaller, volumes have decreased dramatically in comparison to the July spike and the asset seems to be stuck in a small range, which contradicts the current state of play. Stated differently, Ethereum is heading toward 0 volatility. There are two possible interpretations for this lack of movement. Some who are optimistic might contend that Ethereum is just consolidating and gaining strength in preparation for its next breakout. While the 100-day EMA at $3,620 acts as a secondary cushion, the 50-day EMA at $4,124 offers strong short-term support. If volatility picks back up, ETH might soon move back into the $4,600-$4,800 range. However, at the moment, the bearish interpretation is more credible. Usually, a collapse in volatility indicates waning investor interest, a reduction in speculative flows and the possibility of a steep correction should sellers intervene. ETH runs the risk of falling below $4,124 in the absence of fresh demand, which could pave the way for $3,620 and possibly the 200-day EMA at $3,201. In summary, the market should be wary of Ethereum’s…
