Bitcoin and Ether declined from their high resistance levels, implying that bears remain selling on rallies.
New research in Australia implies that the EIP (Ethereum Improvement Proposal) 1559 upgrade put Ether into a better value than Bitcoin. The report said the annual rate of rising in Ether’s supply since then is 0.97% compared to a rise of 1.98% in the supply of Bitcoin.
Demand for Ether has been rising after the surging demand of NFTs, Metaverse-related altcoins, and decentralized finance. Several analysts remain optimistic on Ether and anticipate rallying to the range between $6,500 and $10,500.
Glassnode, the on-chain analytics company, said that long-term holders selling dynamic and high open interest in the derivatives market could increase Bitcoin’s fall. The open interest leverage in futures and options at an all-time high might result in a shakeout.
Can Bitcoin’s correction reshape the entire crypto sector and drag it lower? Let’s study several top cryptocurrencies to find out the answer.
Overview of the BTC/USDT and ETH/USDT prices movements
The bulls could not maintain Bitcoin’s price above the 20-day EMA ($57,906) between November 30 and December 1. This fact suggests that bears can defend the 20-day EMA with power.
The bears will now attempt to descend and maintain the price under the 100-day SMA ($54,486) and the November 29 intraday low at $53,256.65. However, if it works out successfully, the BTC/USDT pair might fall to the critical support level at $50,000.
This is a necessary support to observe because if it falls, the pair might drop to $40,000 if the selling increases momentum.
Ether fell from $4,778.76 at the beginning of December, indicating that bears aggressively defended at $4,869.
If they succeed, the ETH/USDT pair might resume its uptrend, with the next target at $5,797. But, if the price goes below the 50-day SMA, it will mean that traders rush to the exit that could affect the pair’s decline at $3,800.