The recent volatility in the crypto market has once again attracted investors' attention: Pump.fun is testing key support at a low level, while Ethereum (ETH) has also shown a significant correction driven by Bitcoin. Short-term panic intertwined with potential rebounds has created a typical 'bull-bear game' pattern in the market. Let's carefully analyze the recent trends and key support levels to help you feel confident when discussing cryptocurrencies in the group.
PUMP: Double bottom testing is underway, with clear short-term bearish pressure ⚠️
Pump.fun has fallen for three consecutive days, with the latest trading price at $0.00276, a daily drop of 6.5%, and trading volume surged by 25%, indicating a dim market sentiment and strong bearish momentum.
The background for the price decline mainly has two aspects:
Overall market pressure: Bitcoin (BTC) fell by 3.5% in 24 hours, Ethereum (ETH) dropped by 4.25%, leading to overall pressure on altcoins, with total market capitalization decreasing by 3.07%.
Decline in revenue and buybacks: Pump.fun's total revenue has dropped from $2.59 million to $1.41 million, and funds for repurchasing tokens have also decreased, weakening price support.
However, PUMP still has a glimmer of 'hope': Nansen data shows that its foreign exchange reserves have decreased by 12.43% over the past 30 days, which usually indicates that holders are increasing their positions, potentially signaling long-term support.
From a technical perspective, PUMP is testing the key support level of $0.00276 on the daily chart, showing a double bottom pattern on the four-hour chart. If it breaks below $0.0027, it may further test $0.0022 in the short term; conversely, if the four-hour candle closes above $0.0032, a rapid rebound may occur.
In short, PUMP still leans bearish in the short term, but the decline in foreign exchange reserves provides some psychological support. Investors should pay attention to the breakout of the neck line in the double bottom pattern.
ETH: Historical high correction, clear short-term bearish signals 📉
After Ethereum hit a historical high of $4,950, it has recently started to decline significantly. The current trading price is below $4,550, showing a bearish trend similar to Bitcoin.
Key technical points:
Support levels: $4,350 (preliminary), $4,280 (main), with $4,150 and $4,065 as key supports below.
Resistance levels: $4,510-$4,550 area, short-term upward movement is blocked. If it breaks through $4,550, it may reach $4,750-$4,880 in the future, or even challenge the psychological level of $5,000.
Trendline and Indicators: The ETH/USD hourly chart shows a bearish trendline near $4,510, MACD losing momentum in the bullish zone, and RSI below 50, all pointing to short-term bearish advantages.
In summary, if ETH cannot hold the resistance level of $4,550, downward pressure will continue, and investors should be wary of the risk of a short-term drop below $4,280, while monitoring opportunities for rebounds at key support areas.
Divergence in bulls and bears: short-term bearish, potential rebound still exists ⚖️
Combining the trends of PUMP and ETH, we can see several main lines in the recent market:
Significant short-term downward pressure: PUMP double bottom testing, ETH breaking key support, showing that bears are dominant.
Support levels and reserves provide psychological buffers: PUMP's foreign exchange reserves are declining, and if ETH's lower support level holds, a short-term rebound may still occur.
Overall market sentiment affects altcoins: The declines of BTC and ETH often drive fluctuations in smaller coins, and investors need to pay attention to the overall market trends.
💡 One-sentence summary: Pump.fun is testing a double bottom near key support levels, with strong short-term bearish pressure; Ethereum is also correcting under the influence of Bitcoin. If it holds the key support, there may still be rebound opportunities, but overall market sentiment is cautious.
✍️ Remember to DYOR, manage risks well, and wish everyone smooth sailing in the crypto world! 🌊
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