Ether ‘Bear Trap’ Sparks Bitcoin Rebound to $93K as XRP Tests $2.3 Resistance

Ether ‘Bear Trap’ Confirmed 

The most anticipated Fusaka Upgrade will go live today, December 3. The upgrade is anticipated to enhance L2 scalability, boost node efficiency, and lower cost. The core feature of the upgrade is Peer Data Availability Sampling (PeerDAS). The PeerDas will enable the validators to sample small pieces of data without storing the entire data blob. This would facilitate cheaper transactions and higher throughput. With the Fusaka upgrade, the gas limit will increase from 30 million to 60 million, allowing each block to process a larger volume of transactions.

Against the backdrop of the Fusaka upgrade, the price of ETH surged by 9% in the past 24 hours. The ETH is currently trading at around $3,059.22. The market cap touched $369.54 billion. The 24-hour trading volume jumped to $29.36 billion. The enhanced whale activity around the ETH is further strengthening the bullish sentiments. The whales are reportedly accumulating Ether prior to the Fusaka upgrade. The whale accumulation usually follows retail FOMO. 

According to analysts, the hourly chart of ETH confirms a ‘bear trap’. The token briefly slipped below the lower boundary of the descending line, creating an illusion of a breakdown, but quickly rebounded back inside the structure. The dip and reversal clearly show that selling pressure has been absorbed, and sellers are unable to drag the price further down. With buyers aggressively stepping into buy at the lows, the path to least resistance has now shifted to the upside, confirming a bear trap. 

Along with Ether, the overall crypto market rebounded, led by Bitcoin. Being the most valued cryptocurrency, Bitcoin has a considerable effect on the price trajectories of the rest of the digital currencies, including Ether.

BTC Rebounds to 93K Zone 

Bitcoin is currently trading at around $93,861.95; the price is up by 7.7% in the past 24 hours. The market cap touched $1.87 trillion. The increased institutional interest, macro conditions, and strong technical signals have created a bullish impact on the market.  Vanguard, one of the world’s largest asset managers, reversed its ban on Bitcoin Exchange Traded Funds (ETFs), sending a bullish signal to the market. Besides, the $182 million worth of short positions were forced to close. The forced closure created a cascading short squeeze. Moreover, the heightened probability for a Fed rate cut and quantitative easing is acting as a tailwind as well.

Bitcoin is currently trading above the 10-day Exponential Moving Average. 14-day Relative Strength Index (RSI) reading is also confirming a bullish momentum building. Furthermore, the MACD histogram is sending strong buy signals. Traders are now closely watching whether BTC can hit $100 soon. 

XRP Eyes $2.3 Resistance

The Ripple-backed XRP is in green today. The price has ticked up by 9% in the past 24 hours, and the market cap touched $131.8 billion. A bullish MACD crossover and a Relative Strength Index (RSI) nearing 50 suggest the growing bullish sentiments. Currently,  XRP is hovering around $2.18. It’s a crucial zone for XRP, with the next near-term resistance at $2.3, the 50-day Exponential Moving Average. If XRP successfully overcomes the $2.3 resistance, the Fibancoi resistance will appear at $2.4. A break above  $2.4 would strengthen the case for a continued uptrend.

The overall crypto market cap surged to $3.14 trillion today, with all major cryptocurrencies trading in green. BTC, ETH, and XRP are eyeing a rally supported by strong technical signals and macro tailwinds. While these three are heading towards crucial resistance levels, the investors are advised to exercise caution, as high volatility is the norm in the crypto market. 

Also Read: RedotPay + Ripple: A New Era In Crypto-to-Fiat Integration