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Market update: Bitcoin and Ethereum test crucial support level

Market update: Bitcoin and Ethereum test crucial support level

Following the news that the Chinese real estate giant Evergrande is in danger of collapsing, prices fell sharply across all sectors. Equities plunged, but cryptocurrencies were also hit hard.

Bitcoin (BTC) continued its decline below the $43,500 support level, even breaking the $42,000 support and last night was even trading close to $40,000. It is recovering losses at the time of writing (12:00 CEST), but the bears still have the upper hand and are keeping the price below $43,500.

Similarly, most major altcoins fell heavily. Ethereum (ETH) fell below support levels of $3,200 and $3,000. XRP fell nearly 4% and even briefly went below the $0,880 support zone. ADA peaked down below $2.00 before correcting higher.


After a daily close below $45,000, the Bitcoin price picked up bearish momentum. BTC was trading below the support levels of $43,500 and $42,000. The price was even trading below $41,200 before the bulls appeared at $40,200 and pushed the price back above the $42,000 level. The bulls are now finding resistance at the $43,500 level. The next major resistance could be at $45,000.

On the downside, immediate support lies at $42,000. The first major support is at $41,200, below which the price could again test the main support at $40,000.


The Ethereum price followed a similar pattern and fell hard below $3,200. ETH even dipped below the $3,000 and $2,980 support levels. However, the bulls took over again at the $2,800 support zone.

The price is now recovering and trying to re-establish $3,000 as a support level. The next major resistance lies at $3,120, above which the price could start an upward movement again.

Price of ADA, DOGE and XRP

Cardano (ADA) fell sharply to below $2.20 support. It even peaked below the $2.00 level, but the downward movement was limited. The price is now recovering and trading near $2.15. The main hurdle for the bulls now forms at $2.20. If another decline comes, the bulls could struggle to protect $2.00.

Dogecoin (DOGE) fell hard below $0.21 and $0.205. It also tested $0.199, where the bulls prevailed again. The price is back above $0.212, but it needs to pass $0.22 to stay higher in the near term.

The price of XRP fell nearly 4% and settled below the $1.00 level. The price was trading below $0.950 and $0.920. It tested $0.865 and climbed back above $0.920. To return to a positive zone, the price needs to establish itself above the $1.00 resistance level. Throughout the crypto market, we are seeing a similar pattern, which is most likely caused by the uncertainty surrounding China’s Evergrande. Most coins and tokens are now recovering, but the market seems shaky and volume is not very convincing. It is therefore advisable to trade with caution.

Luc Smits van Oyen
Coinmerce news