Ethereum has dipped below $2,000 again as the crypto market took a hit Friday morning, with all major digital assets except for Dogecoin down significantly. Is This the End of the Bull Run?
The crypto market experienced a sharp sell-off Friday morning Eastern Time, with most of the top digital assets suffering significant losses.
Ethereum (ETH), XRP, and Solana (SOL) were among the worst performers, while Dogecoin (DOGE), the original meme coin, was the only one that managed to pump amid the market dip.
Ethereum breaks below $2,000
The second-largest cryptocurrency by market capitalization, broke below the $2,000 support level it had reclaimed last week. As of this writing, it had shed more than 4% of its value and was trading for $1,941.
ETH has been struggling to maintain its momentum amid the uncertainty and volatility in the crypto market. The network is also facing high gas fees, congestion, and competition from other smart contract platforms, such as Solana and Avalanche.
Ethereum is still awaiting the launch of its highly anticipated upgrade, Ethereum 2.0, which aims to improve its scalability, security, and efficiency by transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.
The upgrade is expected to be completed by early 2024.
Ethereum is trading below its 50-day and 200-day moving averages, indicating a bearish trend. The next major support level for Ethereum is at $1,800, while the resistance level is at $2,200.
Bitcoin barely holds above $36,000
Bitcoin, the largest and most dominant cryptocurrency, was also hit by the market downturn. As of this writing, it had lost 2% in the past 24 hours and was trading slightly above $36,000, according to CoinGecko.
Bitcoin’s dominance, which measures its share of the total crypto market capitalization, slid slightly to 51%, impacting the overall market sentiment. Bitcoin has been facing resistance at the $40,000 level, as well as regulatory pressure and environmental concerns.
The cryptocurrency is also awaiting the activation of its first major upgrade in four years, Taproot, which is scheduled for Nov. 21. Taproot will enhance Bitcoin’s privacy, scalability, and functionality by enabling more complex and flexible smart contracts and transactions.
Bitcoin is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend. The next major support level for Bitcoin is at $34,000, while the resistance level is at $38,000.
Solana, XRP, and Avalanche plunge
Solana, which had been on a big run in the past few weeks, was one of the biggest losers in the market. As of this writing, it had dropped over 9% in the past 24 hours and was trading for $56.82 per coin, according to CoinGecko.
Solana, the fifth-largest cryptocurrency by market capitalization, is a fast and scalable blockchain platform that supports various decentralized applications (dApps) and protocols.
SOL has attracted a lot of attention and investment from the crypto community, especially after the launch of its Wormhole bridge, which connects it to Ethereum and other blockchains.
Solana is currently trading below its 50-day moving average but above its 200-day moving average, indicating a mixed trend. The next major support level for Solana is at $50, while the resistance level is at $65.
XRP, the native token of the Ripple network, was also a big loser. As of this writing, it had lost over 5% in the past 24 hours and was trading for $0.59, according to CoinGecko.
XRP, the seventh-largest cryptocurrency by market capitalization, is a digital asset that facilitates cross-border payments and remittances.
XRP has been under pressure from the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple, the company behind XRP, alleging that XRP is an unregistered security.
XRP is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend. The next major support level for XRP is at $0.50, while the resistance level is at $0.70.
Yesterday, Avalanche surged on news that banking giant J.P. Morgan used the blockchain to tokenize portfolios and also suffered a major correction. As of this writing, it had lost more than 10% of its value and was trading for $20.97, according to CoinGecko.
Avalanche, the 14th-largest cryptocurrency by market capitalization, is a blockchain platform that enables the creation of custom blockchains, decentralized applications, and interoperable networks.
AVAX has been gaining traction in the crypto space, especially after the launch of its Avalanche Rush program, which incentivizes the deployment of DeFi protocols on its network.
Avalanche is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. The next major support level for Avalanche is at $18, while the resistance level is at $25.
Dogecoin defies the market
Dogecoin, the original meme coin, was the only top digital asset that managed to pump amid the market dip. As of this writing, it was trading for $0.08, a 4% increase over the past 24-hour period, according to CoinGecko.
And over the week, the asset, which was once Elon Musk’s favorite cryptocurrency, had gained more than 10% in value.
In the past day, $2.7 billion worth of DOGE had changed hands. The only times the meme coin’s volume had been higher in 2023 were around the time that Musk changed his Twitter logo to a Shiba Inu in April and a Dogecoin developer teased a new development in February.
Dogecoin, the 10th-largest cryptocurrency by market capitalization, is a digital currency created as a joke in 2013, based on the popular internet meme featuring a Shiba Inu dog.
The coin is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. The next major support level for Dogecoin is at $0.07, while the resistance level is at $0.09.
Conclusion
The crypto market has witnessed a significant sell-off Friday morning, with most of the top digital assets in the red. Ethereum has dipped below $2,000, while Bitcoin has barely held above $36,000.
Solana, XRP, and Avalanche have also plunged, while Dogecoin has defied the market and pumped.
Various factors, such as technical indicators, news events, and market sentiment, influence market movements. Investors should be cautious and vigilant, as the market volatility is likely to continue.
