ETH stuck near $3,000, XRP fluctuates, and LTC approaches psychological mark: analysis and forecasts

Bitcoin's sudden local maximum achievement had a positive impact on the mood of investors. The altcoin market was also encouraged, however, judging by the dynamics of several hours, it took a short pause. Despite this, the crypto market is beginning to form a positive atmosphere, which has already caused the total capitalization to grow by 5% to $1.8 trillion.

A change in market sentiment may have a positive impact on ETH/USD quotes. Over the past day, the asset has risen by 5.5%, but it is stuck at $2,800. The coin failed to break the $2,900 mark and began to roll back. The drop in quotes is accompanied by a decline in daily trading volumes, and the negative dynamics of price changes (-3%) suggests that the support of buyers in this zone is too small. Even though the next London update is approaching in the asset network, the market is not very enthusiastic about this news. This is due to the developers' statement that the transition to version 2.0 will take longer than expected. Given that as of June 3, the ETH 2.0 update is in Phase 0, the hype around the small benefits of local updates has been greatly exaggerated by the market. The current situation of ethereum will largely depend on the mood of bitcoin. If the first cryptocurrency goes up and overcomes the threshold of $40,000, then you can count on a retest of $3,000 and further movement towards $3,500.

analytics60b8ebac5df7a.jpg

The XRP token also demonstrates a slight increase, which has risen in price by 3% over the past day, to $1.05. At the same time, the current dynamics of price changes has become sharply negative, like that of ETH, which indicates the recovery of the recent positive and the stabilization of the exchange rate in the usual levels. The XRP/USD pair did not manage to get out of the fluctuation range in the region of $0.983-$1.05. The cryptocurrency has successfully gained a foothold in the region of $1, and the price consolidation at this level is complete. However, the coin lacks the trading volume and bulls' optimism to ram the $1.1 mark. The token only once, on June 1, managed to get close to this milestone, but immediately collapsed to the usual level of support. Given the lull after the local victory over the SEC, the coin will need a stronger momentum to successfully consolidate above the $1.1 mark.

analytics60b8ebaf1172f.jpg

The quotes of the LTC/USD pair managed to achieve local success and overcame the $190 mark, where the cryptocurrency failed on June 1. During the day, the asset managed to rise in price by 6%, however, like other altcoins, it fell under the stabilization of the exchange rate. The narrower dynamics of price changes remain negative (-3%), and it is very important for Litecoin to successfully test the support above $190. As of 12:00 UTC, the coin is in the region of $193 and is approaching a dangerous level. If LTC fails to stay above the safe limit, the crypto asset can sink to $170.

analytics60b8ebb1b5736.jpg

Despite the local decline, right now the cryptocurrency market is closer to recovery than another drop in quotes. A wave of optimism was launched by bitcoin, which managed to avoid the formation of the "death cross" and for the first time in 5 days reached $39,000. This gave large players an understanding that the asset is close to recovery and a successful retest of the $40,000 mark. In addition, Google partially lifted restrictions on advertising crypto platforms and wallets, which also had a positive impact on the quotes of coins and the entire crypto market. At the same time, clouds are gathering regarding the possible tightening of the regulation of crypto assets. A working group has already been established in the United States to develop a legal framework, and 45 amendments to European legislation to regulate cryptocurrencies in the EU have been registered in the European Parliament. Despite this, in the long run, this will play into the hands of the institutionalization of the market, and local negative aspects will be quickly recouped by the market. In the near future, the position of bitcoin will determine the vector of development of coins, as the correlation between BTC and altcoins has reached its maximum level recently.

The material has been provided by InstaForex Company - www.instaforex.com

Pages