As Bitcoin‘s value falls below the $69,000 mark once again, the altcoin sector is seeing a significant downturn, with losses nearing 5%. The heightened risk of Bitcoin’s volatility prompting broader market movements has contributed to a cautious approach from investors during these downturns. The current conditions raise questions regarding the outlook of major altcoins.
Ethereum’s Struggle Below Threshold
Even with Dencun’s substantial reduction in Layer 2 transaction fees, Ethereum (ETH) is struggling to climb above the $4,000 level. The anticipation around the upcoming decision on the spot Ethereum ETF on May 23 is low, as the SEC considers classifying ETH as a security, dampening hopes for an ETF approval in the near term.
Currently, ETH is trading at $3,452, with daily losses close to 5%. Despite the downtrend, the ETHBTC ratio has avoided falling to its January 2024 nadir. A rebound from the 0.05 level against BTC might signal the beginning of a recovery, but failure to hold this zone could see ETH prices plummet to around $1,500, assuming Bitcoin’s price remains constant.
Against the USD, if ETH closes below $3,464, it may face a drop to support levels at $3,260 and further down to $3,154, with additional supports at $2,912 and $2,277.
Loopring Coin’s Potential Resilience
Loopring Coin, alongside ETH, is retreating from recent highs. A break below the $0.352 support level seems possible, a threshold where previously, strong buying interest emerged. Should the sell-off persist, further declines to $0.28 and then $0.246 might follow. The critical support lies at $0.22, but a recovery above $0.4 could propel LRC Coin towards the $0.55 mark and beyond.
Points to Consider
- Ethereum’s potential for recovery hinges on sustaining the 0.05 ETHBTC level.
- Key support levels for ETH offer potential buy-in points at $3,260 and $3,154.
- Loopring Coin’s current support at $0.352 remains crucial for preventing further declines.
In the realm of altcoins, attention turns to the Shiba Inu forums where investors gather to discuss the latest trends. Despite the promise to release game-changing strategies to compete with Dogecoin, the Shiba Inu team has remained silent, refraining from major announcements. This has led to a stagnant price level for SHIB, which if broken, could result in a further slump to lower support levels.