Ethereum has struggled to gain momentum, remaining stuck below critical resistance for over a year. Despite multiple attempts, the second-largest cryptocurrency by market capitalization has been unable to break through key technical levels since the beginning of this year. 

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Ethereum’s price action over the past two weeks has shown more weakness. An interesting analysis from analyst Tony “The Bull” Severino shows that the cryptocurrency recently failed to break above a resistance indicator and is now at risk of more catastrophic price drops.

Ethereum Fails To Breach Long-Term Resistance

Tony “The Bull” Severino, in a technical analysis shared on social media platform X, highlighted Ethereum’s persistent failure to overcome major resistance levels. He pointed out that Ethereum has been unable to tag the quarterly (three-month) Parabolic SAR despite more than a year of attempts. This indicator, often used to determine the direction of an asset’s trend, shows that Ethereum is locked in a prolonged struggle against resistance on a larger downtrend. 

“This feels like it sends a message — resistance won’t be broken,” the analyst said.

Image From X: Tony “The Bull” Severino

Adding to the failure to break resistance, Tony Severino also noted in another analysis that Ethereum has repeatedly faced rejection from the quarterly (3M) SuperTrend dynamic resistance, further solidifying the case that buyers have been unable to regain control.

Image From X: Tony “The Bull” Severino

A Monthly Close Below $2,100 Could Be Catastrophic

Ethereum’s inability to sustain key price levels has been a dominant theme in the past six months. Interestingly, this inability was shown further in the past two weeks. After failing to hold above $2,800, the cryptocurrency has seen a steady drop, losing multiple support zones along the way. 

Currently, Ethereum is trading below $2,200, edging dangerously close to breaking below the crucial $2,100 threshold. A drop beneath this level is particularly concerning, not just because it signifies the loss of yet another psychological support but because technical indicators suggest that a monthly close below $2,100 could have severe consequences.

One of the most significant warning signs comes from the quarterly Bollinger Bands indicator, which has tracked Ethereum’s price action since February 2022. According to this indicator, Ethereum has remained within a defined range, with the upper Bollinger Band currently positioned at $4,190 and the lower band at $2,098. The worrying part is that a monthly close below $2,100 would effectively translate to breaking beneath the lower Bollinger Band and removing a long-standing support level.

Image From X: Tony “The Bull” Severino

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At the time of writing, Ethereum is trading at $2,178, having gained 2.2% in the past 24 hours after starting the day at $2,120. Ethereum’s sentiment is now at its lowest level this year. The next few weeks will be crucial to see if Ethereum can reclaim lost ground and prevent a monthly close below $2,100.

Featured image from Tech Magazine, chart from TradingView

A closely followed crypto strategist believes that the payments-focused token Litecoin (LTC) is in a position to spark a strong upside burst.

Analyst Ali Martinez tells his 130,600 followers on the social media platform X that Litecoin appears to be trading in a wide range between $135 and $98.

According to Martinez, Litecoin could rally toward the top end of the range if LTC stays above its diagonal support during the current correction.

“If Litecoin LTC holds above $98, increased buying pressure at this level could fuel a rally toward $135!”

At time of writing, Litecoin is worth $101.92.

Martinez also notes that deep-pocketed investors have gobbled up over $43 million worth of LTC in two days as Litecoin hovered close to $98.

“Whales bought 430,000 Litecoin LTC in [48 hours]!”

Meanwhile, fellow crypto analyst Credible is not so bullish on LTC, at least in the near term. Credible shares a chart with his 465,000 followers on the social media platform X suggesting that Litecoin may tumble below $70 where it will likely find the demand it needs to spark a potential rally close to $200.

“Been patiently waiting for this one for [weeks] now.

Let’s see if this pullback across the board will give it to me.”

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New data from the market intelligence firm IntoTheBlock reveals that the long-term growth of an artificial intelligence (AI)-focused altcoin is on track.

In a new thread on the social media platform X, IntoTheBlock says the numbers show that AI project Kaito (KAITO) – which had its highly anticipated token launch earlier this year – is primed for long-term growth despite users pulling profits from its initial airdrop.

“KAITO was among the most anticipated token launches this year, but is the excitement holding up? Currently, about 41,800 addresses hold a balance, many established during the initial airdrop. While over 90,000 addresses were created in a single day, around 55% emptied out immediately, likely capturing airdrop profits.

Even so, momentum remains solid: on average, 1,800 new addresses are added daily, and the adoption rate exceeds 30%. This steady influx of users suggests that KAITO’s long-term growth story is still unfolding.”

Kaito, an information finance (InfoFi) protocol, aims to solve the issue of fragmentation within the crypto space by using AI. Fragmentation happens within the crypto world when markets become increasingly divided by different blockchains, leading to separate sets of standards and a lack of interoperability.

“By indexing thousands of sources – across social media, governance forums, research, news, podcasts, conference transcripts, and more – and combining this with proprietary search algorithms, semantic LLM (large language model) capabilities, and real-time analytics, Kaito Pro streamlines access to high-quality, actionable insights in the crypto space.”

KAITO is trading for $1.64 at time of writing, a 1.7% increase during the last 24 hours.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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