Ethereum on the Brink of a Plunge: What to Expect and Meme Coin Intraday Gain Surprises

Ethereum on which meme coin will reach on the Brink of a Plunge: What to Expect and Meme Coin Intraday Gain Surprises

In the volatile world of the crypto market, Ethereum (ETH) has been a focal point for traders and investors alike. Recently, there have been signs suggesting that Ethereum might be on the verge of a significant price movement, specifically a potential plunge. Meanwhile, meme coins have been creating waves with their intraday gain surprises.

Ethereum's Precarious Position

Looking at the technical analysis of Ethereum, the situation seems rather tense. On the 1 - day chart, ETH has far exceeded the 200 - day moving average (2,582 dollars) and the 100 - day moving average (2,625 dollars). However, the price is currently retreating towards the middle line of the Bollinger Bands (3,065 dollars). If this support level fails to hold, it could turn into a mid - term correction zone.

Chain - based position and futures data also support the view of a potential downward trend. According to Coinglass, Ethereum's 24 - hour trading volume increased by 12.6% to reach 147.29 billion dollars, while the open interest only rose by 2.73%. This indicates that the trading volume was driven by liquidations or profit - taking, rather than new buying. The long - short ratio of top traders on Binance is 2.62, which means that if the price drops below 3,650 dollars, long positions will face significant risks and become more vulnerable.

Short - term charts, including the 30 - minute and 4 - hour charts, show a more cautious trend. On the 4 - hour chart, the Supertrend has not yet reversed to bearish, but the Parabolic SAR has turned negative. The Volume - Weighted Average Price (VWAP) has been rejected on multiple K - line charts, and the price is putting pressure on the lower Bollinger Band, increasing the risk of an accelerated decline towards 3,600 dollars or lower. The immediate support level is around 3,590 dollars, followed by 3,520 dollars. If sellers break below these levels, the next potential target will be the liquidity area between 3,380 dollars and 3,400 dollars since mid - July.

FAQ: What does it mean when the trading volume is driven by liquidations or profit - taking?When the trading volume is driven by liquidations or profit - taking, it implies that traders are closing their existing positions. Liquidations usually occur when a trader's margin falls below a certain level, forcing the exchange to close their position. Profit - taking means that traders are selling their assets to lock in profits. In either case, it shows that there is no significant new buying interest in the market, which may lead to a downward pressure on prices.

Potential Scenarios for Ethereum

If Ethereum confirms an hourly close below 3,650 dollars, it may further decline to the range of 3,590 dollars to 3,520 dollars. Deeper target levels include 3,380 dollars and 3,200 dollars, where the price consolidated before the recent breakout. On the other hand, there was also some positive news in the past. For example, on July 9th, the Supertrend reversed to bullish and has been closely following the price movement. The Directional Movement Index showed that +DI was 25.3, leading - DI which was 11.5, and ADX was also rising, confirming the strengthening of the trend. In the 30 - minute chart, ETH has been following an ascending channel since July 24th. The price is near the middle line, with the VWAP support at around 3,883 dollars, and the Relative Strength Index (RSI) dropped from 66 to 62, avoiding the overbought area. If the channel breaks, the expansion of volatility may push ETH towards 4,050 dollars. However, traders need to be cautious about the long - term red zone between 4,000 dollars and 4,200 dollars, as it has previously triggered a series of sell - offs.

FAQ: How should traders respond to Ethereum's current situation?Traders should closely monitor key support and resistance levels. If the price breaks below important support levels, they may consider reducing long positions or even opening short positions. Conversely, if the price breaks above resistance levels with strong volume, it could be a signal to enter long positions. It's also crucial to set stop - loss orders to limit potential losses.

Meme Coin Intraday Gain Surprises

While Ethereum is facing uncertainty, meme coins have been providing some unexpected intraday gain surprises. Meme coins, which are often based on internet memes and have a strong community - driven nature, can experience rapid price increases within a single trading day. These gains are usually driven by social media hype, celebrity endorsements, or sudden shifts in market sentiment.

However, it's important to note that meme coins are extremely volatile and risky. Their prices can also crash just as quickly as they rise. Investors should approach meme coins with caution and conduct thorough research (DYOR) before investing. Unlike Ethereum, which has a more established technological foundation and real - world use cases such as smart contracts and decentralized applications, meme coins often lack fundamental value.

FAQ: Why are meme coins so volatile?Meme coins are highly volatile because they are mainly driven by market sentiment and social media influence. Their prices are not based on traditional financial metrics or fundamental value. A single tweet from a well - known figure or a viral post on social media can cause a large number of people to buy or sell meme coins, leading to significant price fluctuations.

Conclusion

The crypto market is a complex and ever - changing landscape. Ethereum is currently at a critical juncture, with the potential for a plunge but also the possibility of an upward breakout. Traders and investors need to stay vigilant and keep a close eye on key technical indicators and market data. Meanwhile, meme coins offer exciting intraday gain opportunities but come with high risks. As always, in the crypto market, it's essential to manage risks effectively and make informed decisions based on careful analysis.

In summary, the future of Ethereum remains uncertain, and the meme coin phenomenon continues to add an element of surprise to the crypto market. Whether you're a seasoned trader or a novice investor, it's important to stay updated and adapt to the market's dynamic nature.