The weekend has seen the market take a dip and at the start of the week, the losses are extending further. After initially dropping below $135 billion, the market has at the time of press dropped to $132 billion. This bearish trend if persistent could see the market drop to $130 billion. The largest altcoin by market cap, Ethereum (ETH) has had one of the steepest drops throughout the weekend and at the start of the week.
While its immediate neighbors on the higher side, Bitcoin (BTC), and on the lower side XRP are recording marginal drops of less than 1%, ETH is down by a little over 2% at the time of press.
For the last couple of days, ETH has been trading in a tight range between $138 and $133. If the asset continues to drop in value, the bears could manage to drag prices below $133 which will put holders under pressure of selling. This could further see a sell-off pulling prices to the $130 price range.
Bitcoin’s Inability To Break $4,000 Causing Major Slack
During the weekend, Bitcoin went through a sudden price surge that was meant to see the coin cross above $4,000. Resistance around the $3,980 position prevented this, seeing the coin drag back to $3,940. This was followed by further drops through the weekend and at the time of press, the coin is at imminent danger of dropping below $3,900.
The sudden charge during the weekend from BTC attracted other coins to surge and it is only when the coin was unable to cross $4,000 that things began to go south. It is currently perceived that BTC getting above $4,000 and maintaining above this is a major bullish signal and shows strength in support, A further rise, above $4,200, remains the key target and key signal of a long-term bullish trend.
During the weekend when BTC failed to test the $4,000 position, it signaled weakness with the bulls and showed that the bears are in control. This failure has since caused about major concern among traders and crypto enthusiast, and prove has been the slow reaction from around the market and the continued control by the bears.
When the bulls finally react, we expect prices will try and break the $3,980 resistance position and finally breach $4,000. This will, however, have to be followed by major support ensuring that the coin does not fall back below if a bullish outlook is to persist.