Last week, volatility in the cryptocurrency market led to a staggering $100 billion loss. This decline was reflected in the global cryptocurrency market capitalization, which fell by 4% to $2.36 trillion at the time of writing. Here are the top cryptocurrencies to watch over the next few days.
Ethereum It drops to less than $3,000
Ethereum (ETH), the second largest cryptocurrency, saw its value fall below the $3,000 threshold.
Ethereum attempted a last-minute rally in the latter part of the week, but the strategy faltered under sustained bearish pressure throughout the week.
In contrast to the previous week, Ethereum started this week on an unfavorable footing, with the price falling 2.37% on May 5.
After this initial decline, the asset continued its downward trajectory, seeing three consecutive days of losses as of May 8.
During this period, the price of Ethereum fell by 5.3%, with liquidations outpacing those of Bitcoin (BTC). However, it managed to hold strong support at $2,935, coinciding with the lower limit of the Bollinger Bands indicator on the daily time frame.
This decline led Ethereum to abandon the $3,000 psychological price area, which it recently reclaimed at the end of last week.
After retesting the $2,935 support level on May 8, Ethereum made a notable recovery the next day, rising by 2.10% and once again crossing the $3,000 threshold.
The recovery proved fleeting, as a massive 4.17% decline on May 10 wiped out these gains entirely.
Despite efforts to recover, Ethereum is facing downward pressure, remaining below the $3,000 price level. At last check, the asset is down 6.4% over the week, and has a market price of $2,934.
Lesser popular altcoins such as Book of Meme (BOME) and Helium (HNT) also saw similar declines.
BOME retests the 26-day EMA
The only meme coin on the list, Book of Memes has also felt the impact of market uncertainty despite its tendency to make odd gains during market downturns. At the beginning of the week, the BOME index was trading well above its 26-day moving average.
The BOME index has been trading below this trend-following indicator throughout the past week, indicating downward momentum. The rebound that began last Wednesday culminated in a rise above the pivotal level.
The bears have spent this week trying to drop the BOME index below the 26-day moving average, a move that could lead to a series of price declines below $0.010. After retesting the moving average on May 6, the BOME index rose 7.89% on that day, bucking the overall market trend.
The bears caught up after that, with a series of retests of the 26-day EMA recorded since then.
At press time, BOME is trading at $0.010863, trading slightly above the moving average at $0.010828. If it drops below the EMA, its last line of defense above $0.010 is at the $0.010475 area.
Helium is seeing rising selling pressure
Helium did not escape the broader market downtrend, seeing a three-day decline similar to what happened in Ethereum at the beginning of the week. However, its losing streak led to an even larger 19.6% decline on May 8.
This continued downtrend saw HNT abandon the $5 price area for the first time this month, falling to $4.5. Despite the recovery campaign that followed on May 9, the resistance level at $5 was too strong to break.
A retest of $5,126 on May 10 eventually led to another price collapse.
Helium's inability to regain the $5 level was a result of increased selling pressure. The Accumulation/Distribution metric has continued to decline throughout this month, falling from -3.036M on May 1 to -3.505M at last check.
This continued decline indicates a growing sell-off, as market participants look to exit the market on the back of a downtrend.
Additionally, Coinglass data confirms that investors have deposited $2.127 million worth of HNT on exchanges since April 30, with exchange flows seeing a continued rise.
