Following yesterday’s gains, both bitcoin and ethereum consolidated on Wednesday, as bullish momentum eased. BTC moving slightly lower after rallying to above $32,000 while ETH fell below $2,000 once more during the humpday session.
Bitcoin
BTC was trading lower on hump-day, as bullish sentiment slightly faded, following yesterday’s price surge.
After a close to three-week high of $32,249.86 Tuesday, the BTC/USD fell to $31,286.15 today.
The drop is due to bitcoin bulls likely deciding to liquidate their positions, despite recent resistance at $30,500.
Typically after such a breakout — especially after weeks of consolidation — momentum extends, however bulls seem uncertain about further increases, hence why some have abandoned positions.
Looking at the chart, this may be due to the fact that they spotted the ceiling on the 14-day RSI of 51, which hasn’t been broken in three months.
But, if relative strength is greater than this, there will be a rise towards $34,000.
Ethereum
Ethereum, just like BTC, moved lower Wednesday. Prices fell below $2,000 before moving towards long-term resistance/support levels.
ETH/USD dropped to an intraday low of $1,918.96 earlier in today’s session, which is a level that has acted as both support and resistance in recent weeks.
This drop in prices sees the world’s second largest cryptocurrency now trading roughly 1.59% lower than yesterday’s peak around $2,016.
After a temporary break at the ceiling at 44.50, Relative Strength Index, most people were anticipating that prices would continue climbing.
However, momentum began to slow for the reasons previously mentioned. Many chose to hold on to earlier gains to ensure future entry.
We will see a movement towards a higher ceiling at 50 once the 44.50 mark is reached. This could lead to ETH trading near $2,150.
Is it possible that ETH will continue its consolidation in the first week of June. Please leave your comments.
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