Bitcoin and Ethereum price rise halting makes way for layer-2 & DeFi tokens to chart over 40% gains – FXStreet


Aaryamann Shrivastava Aaryamann Shrivastava

Bitcoin and Ethereum price initiated the bullish momentum that pulled up the entire cryptocurrency market. However, even as their rally comes to a halt, the rest of the altcoins seem to continue making the most of the situation, resulting in a significant rise over the past couple of days.
Bitcoin, after hitting $35,000, stepped back for a while, and Ethereum price did the same after reaching $1,857. Both the cryptocurrencies for the past few days have been moving sideways as the market cools down, but there is an inkling that this sideways price action could result in a decline. 
In the case of Ethereum, the Moving Average Convergence Divergence (MACD) indicator contributes to this forecast as the receding green bars on the histogram suggest the bullishness is waning. If this is followed by the signal line (orange) moving over the MACD line (blue), a bearish crossover would be confirmed.
This would occur only if Ethereum price loses the support of $1,827, which coincides with the crucial 61.8% Fibonacci Retracement from $2,005 to $1,539. The ensuing bearish momentum would not only confirm a bearish crossover but also bring ETH down to 50% Fibonacci line at $1,772.
ETH/USD 1-day chart
ETH/USD 1-day chart
However, if the sideways momentum meets bullish momentum via broader market cues and the $1,827 line is tested as a support floor, a recovery is on the cards. Breaching the 78.6% Fib retracement at $1,906 would not only invalidate the bearish thesis but also flip $1,900 into support.
While BTC and ETH are seeing waning bullishness, the past few days have been spectacular for altcoin investors. Many layer-2 cryptocurrencies, as well as Decentralized Finance (DeFi) tokens, have seen significant rises along with the majority of the layer-1 tokens.
Analytics platform IntoTheBlock, in regards to this shift in capital, stated,
“This week’s trend suggests this rotation is beginning to take place as Bitcoin and Ether trend sideways while DeFi and alternative L1 tokens record a strong rebound.
This was verified by the fact that SushiSwap noted a 63% rise in the past three days. Other top DeFi tokens like THORChain (RUNE), PancakeSwap (CAKE), and Aave (AAVE) noted about 35%, 31%, and  15%, respectively.
This resulted in the market capitalization of altcoins, excluding Bitcoin and Ethereum, observing a 14.67% growth, adding 47.13 billion since mid-October. This has brought the market cap to $368 billion, but for the recent losses to be recovered, altcoins would need to collectively raise the market capitalization by 9.38% and register inflows worth $34.55 billion to bring it to a 2023 high of $402.5 billion.
Altcoin market capitalization
Altcoin market capitalization
Historically, crypto cycles have followed a pattern of Bitcoin leading the first surge, followed by Ethereum rising, and eventually, capital progressively being allocated to lower-cap and riskier bets. However, if the broader market cues turn bearish, these altcoins could also note sideways movement.
Read more – SushiSwap price rallying by 63% in four days causes $4.8 million worth of short liquidations

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
The US economy added 150,000 jobs in October, coming in below market expectations of 180,000. As the job market cools, the NFP data is likely to drive upside volatility in Bitcoin and altcoins. 
Around a hundred FTX customers have joined a block that represents more than $230 million in claims. The coalition is voting for a plan that includes FTX 2.0, recovery and equity token, and preference settlement.
Ripple price sustained above the $0.59 level, on Friday, close to its $0.62 local top. On-chain indicators reveal a rising demand for XRP tokens among market participants. 
Total value locked in SUI climbed to $82.62 million as the protocol gains relevance among traders. SUI token unlock event increased selling pressure on the asset, the token nosedived nearly 5%.
Bitcoin (BTC) price, on the daily time frame, showcases not one but multiple sell signals. To add to its woes, on-chain metrics are also showing profit-taking en masse. While the rally prompted by the potential ETF approval has propelled BTC so far, the lack thereof could also knock the pioneer crypto lower. 
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Reply

Your email address will not be published. Required fields are marked *