In the crypto market, we are seeing some positive signs today. Ethereum, the second-largest coin by market cap, has been hammed by the bears during the past week. The price of Ethereum was down more than 70% from its all-time high, in fact, it was only 100 above the 2017 record high before we started to see some upticks coming back. The sell-off, which got triggered by the crypto king, Bitcoin, has engulfed everything. However, it seems like traders know that bottom is not too far, and it is the right time to get involved before it is too late.
In terms of technical analysis, Bitcoin prices have bounced from a very critical price point—the 50-day SMA on the daily time frame. The Bitcoin didn’t quite reach the 50-day SMA, but it wasn’t too far from breaking this average to the downside. For now, traders are still highly cautious as they believe that Bitcoin can still drop below the 40K.
As for Ethereum, the price violated the 50-day SMA for the first time since October last year, and unless it moves above this average, one could that the good days are behind Ethereum.