ADA is up 14%, DOGE is up 12%, ETH is back $ 3,000, but here’s why you shouldn’t get excited too soon

After the recent 15-20% sell-off in the crypto market, which hit both the Bitcoin and Altcoin markets, most assets have rebounded above key levels. At the same time, however, there are various on-chain and market indicators that do not indicate a broad-based recovery and general trend change.

Altcoin “relief” rally

Top altcoins like ADA, DOGE and Ethereum have rallied an average of 13% and are showing strong growth today. However, this gain is not enough to regain the loss from two days earlier, about 20%. Smaller and more volatile altcoins like AVAX gained traction after the slump.

Source: Coin360

Despite the rise in price, the trading volume of altcoins is still relatively low, which shows a lack of interest from traders.

Ethereum returns to $ 3,000

Many analysts have found that one of the key support zones for Ethereum is at $ 3,000. The main reason is that the average level of entry into the market still fluctuates around this mark. There are a significant number of entries in the $ 3,000-3,200 zone.

Source: Santiment

In the event that ETH falls and stays below USD 3,000 or slips towards USD 2,800, a large number of traders will most likely lose and begin to close their positions. This will further increase the selling pressure in the market. Also, the maximum drawdown for ETH options contracts expiring on September 24th is $ 2,880.

While the Ethereum price recovers, supply on the exchanges is showing slight growth – the first sign of an impending sell-off. But at the same time the supply quota on the exchange is trending sharply downwards, which is a great long-term sign for Ethereum.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to U.today

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page