After weeks of sustaining its bull rally, Ethereum (ETH) price has plunged below $4,000, just shortly after making a new all-time high at $4,221. Dogecoin price also fell after Elon Musk’s appearance on “Saturday Night Live,” where he discussed DOGE.
Ethereum drops 13% from all-time high
Despite making a new record high just a day ago, Ethereum has faced a correction that took its price down by 13%, reaching a low of $3,660. The second-largest cryptocurrency by market capitalization has since regained some strength, as it trades just below $4,000.
Taking a look at the ETH/USDT 2-hour chart, Ethereum has rallied after forming an ascending triangle formation, taking its price to a record high. However, the ETH price could be forming a head and shoulders pattern in the near term, signaling that there could be further correction.
Despite the sharp dip, Ethereum is holding support at $3,767, a level seen where ETH retested temporary lows. ETH would need to climb past $3,980 and hold the level as support before reaching new record highs.
When Ethereum hit new record highs, social sentiment shows that many speculators were euphoric, suggesting new ETH holders were FOMO-ing into the cryptocurrency. With the high level of speculation, markets have historically tended to retrace as holders begin to take profit from the price hike.
Ethereum has shown that even though many investors could profit off the bull market, trading cryptocurrencies remain tricky for most traders. The market plunged by over 13%, which could mean huge losses for investors who don’t have a solid strategy set in place.
Using an automated cryptocurrency trading platform like CoinPanel could literally save you money. CoinPanel allows you to set different types of stop-losses, including stop-limit, where two price levels define the trade, and stop-market, which allows you to get out of a losing position quickly. Since there is no guarantee that Ethereum’s price could recover quickly in the short term, it is essential to get out of a losing trade using a stop-loss strategy that ensures you get the most out of your capital.
Dogecoin crashes after Elon Musk appears on SNL
Despite the recent bullish momentum surrounding Dogecoin, DOGE price has suffered a crash, sending the cryptocurrency down by 43%. Elon Musk has been one of the main drivers for the rallies behind the meme-based crypto, as its price soared to a new all-time high at $0.73 on May 8.
As most markets do, Dogecoin erased most of its gains from last week, down to a low of $0.41. This area also acts as significant support for DOGE as the cryptocurrency flipped this level from resistance to support in early May.
If DOGE does continue on a bearish trend, Dogecoin could see a retest of the $0.37 level as support and further down at $0.32 if the previous level were to be lost. Crucial support and resistance levels could support your trading strategies to understand the areas of where to take profit and set your stop-losses.
Surely, no one can predict the market, and even if you are an experienced trader, markets could still move unfavorably. To be profitable when trading cryptocurrencies, you should be able to easily set stop-losses and take-profit orders without choosing one over the other.
CoinPanel allows you to do both and even set multiple take-profit and stop-loss orders on the same trading pair without having your balance blocked, which usually happens when you trade on an exchange. CoinPanel provides access to trading options that are not possible by just trading on a crypto exchange, allowing you to be able to trade profitably, and lowering your risks.
The trading automation platform CoinPanel also provides you to also view your open Positions, which gives you an overview of your profits and losses on the trades that you have entered into.
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