Ethereum (ETH) and XRP, some of the biggest names in the cryptocurrency market, are approaching their respective horizontal resistance levels
Ethereum (ETH) and XRP, the second and sixth largest cryptocurrencies by market capitalization respectively, are approaching horizontal resistance, according to a tweet from cryptanalytic tool 100eyes Crypto Scanner.
Horizontal resistance, a key term in technical analysis, is a price level that a cryptocurrency or other asset struggles to break above. This often signifies a price level at which an influx of supply (sell orders) is strong enough to prevent the price from rising further.
Ethereum (ETH), the second largest cryptocurrency, boasts a market capitalization of around $229 billion and a weekly gain of 4%. XRP, known for its affiliation with Ripple, has a market capitalization of around $27 billion, but notably outperforms Bitcoin (BTC) and ETH with a 12.8% increase in the past seven days, according to data from CoinGecko. . At the time of writing, Ethereum is trading at $1,909.17 and XRP at $0.532.
These numbers show bullish momentum, but looming horizontal resistance levels may soon test the strength of these uptrends.
In technical analysis, horizontal resistance levels often act as psychological price barriers for traders. These points usually reflect a high level of selling pressure where traders decide to sell their holdings to take advantage of price spikes.
The impact of hitting these resistance levels can vary, potentially leading to a price reversal or consolidation.