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Traders seek stability in stablecoins as BTC and ETH face these hurdles

2min Read

The $30,000 and $2,000 price levels have acted as barriers for the king of cryptocurrencies and the king of altcoins. Traders, thus, turned to stablecoins in light of the hurdles faced by BTC and ETH.

Traders seek stability in stablecoins as Bitcoin and Ethereum face resistance

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  • Stablecoin sharks and whales have recently continued their accumulation trend.
  • BTC and ETH have been unable to break their psychological barriers.

As the sun sets on the second month of the third quarter, traders find comfort in their stablecoins positions per recent data. The allure of stability grows stronger as Ethereum [ETH] and Bitcoin [BTC] grapple with their unyielding psychological barriers, unable to trend above current positions.

In this moment of uncertainty, stablecoins have become a haven for those navigating the volatile crypto market.


– How much are 1,10,100 BTCs worth today


Stablecoin sharks and whales resume accumulation

In a fascinating turn of events, recent data from Santiment revealed intriguing movements among the stablecoin sharks and whales in the crypto ocean. As the mighty Bitcoin [BTC] and Ethereum [ETH] seemed to hit a momentary pause in their trends, these enigmatic creatures wasted no time and swiftly initiated their accumulation strategies.

stablecoins accumulation trends

Source: Santiment

The chart depicting this captivating activity displayed how these influential wallets have set their sights on stablecoins like Tether USDT, USDC, BUSD, and DAI. It’s as if they’ve recognized the need for a more stable haven amidst the choppy waters of the crypto market.

Analyzing the Bitcoin and Ethereum trend

We can observe an interesting pattern by looking at the daily timeframe chart for BTC. After breaking into the $30,000 price range, BTC’s progress hit a roadblock at $31,000. It’s been struggling to surpass this level entirely. Moreover, since it dropped below $30,000, the $30,000 to $31,000 range became a psychological barrier, hindering its upward movement.

As of this writing, Bitcoin was trading at approximately $29,460, showing a minor uptick of less than 1%. However, its recent price trend could have been more impressive, as evidenced by its position below its short Moving Average (yellow line).

Bitcoin/USD price trend

Source: TradingView

Shifting our focus to ETH, we find a similar story. The $2,000 price range became a psychological hurdle for the altcoin. It has approached this level multiple times in recent weeks yet struggled to maintain it.

As of this writing, ETH’s price was around $1,862. Unlike BTC, it was currently trending above its short Moving Average, though it relied heavily on it for support.

Ethereum/USD price trend

Source: TradingView

In both cases, these key price ranges prove significant challenges for the assets. Stablecoins sharks and whales are closely watching to see if they can break through these barriers and regain their positive momentum.


Realistic or not, here’s ETH market cap in BTC’s terms


BTC and ETH traders bet on a price rise

According to data from Coinglass, traders were placing their bets on a potential price rise for BTC and ETH. As of this writing, the funding rate remained positive, consistent with the trend observed over the past few weeks.

This positive funding rate suggested that the overall sentiment among traders was optimistic, as they anticipate BTC and ETH to overcome their current resistance levels.

 

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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