Bitcoin (BTC) and Ether (ETH) have bent off their respective overhead resistance levels, suggesting bears keep selling on rallies.

New research in Australia suggests that upgrading from Ethereum Improvement Proposal (EIP) 1559 made Ether a better store of value than Bitcoin. The report said the annual rate of increase in ether supply since EIP-1559 has been 0.98%, compared to a 1.99% increase in bitcoin supply.

Demand for ether has increased due to the rising popularity of non-fungible tokens, decentralized finance, and metaverse-related altcoins. Several analysts remain bullish on Ether and expect it to rebound into the $ 6,000-10,000 range.

Daily performance of the cryptocurrency market. Source: Coin360

On-chain analytics firm Glassnode said a high level of open interest in the derivatives market and long-term owner sales could prolong Bitcoin’s decline. The “open interest leverage in options and futures at a new all-time high” could lead to a market shakeout.

Could Bitcoin’s Correction Pull Down The Entire Crypto Sector? Let’s check out the top 10 cryptocurrency charts to find out.

BTC / USDT

The bulls were unable to keep Bitcoin’s price above the 20-day exponential moving average (EMA) ($ 57,905) on November 30th and December 1st. This suggests that the bears are vigorously defending the 20-day EMA.

BTC / USDT daily chart. Source: TradingView

The bears will now seek to keep the price below the 100-day simple moving average (SMA) ($ 54,485) and the November 28 intraday low at $ 53,256.64. If successful, the BTC / USDT pair could fall to the psychologically critical support at $ 50,000.

This is an important support to watch for because if it collapses the sale could gain momentum and the pair could drop to $ 40,000. The falling 20-day EMA and Relative Strength Index (RSI) in negative territory suggest that the path of least resistance is on the downside.

Contrary to this assumption, this indicates accumulation at lower levels as the price recovers from the 100-day SMA and rises above the 20-day EMA. The pair could then move to the 50-day SMA ($ 60,750).

ETH / USDT

Ether turned down from $ 4,778.75 on December 1, suggesting the bears are aggressively defending its all-time high of $ 4,868. The price fell to the 50-day SMA ($ 4,319) on December 3.

ETH / USDT daily chart. Source: TradingView

If the price rebounds from current levels, this suggests that sentiment will remain positive and traders will buy on dips. The bulls will then make one more attempt to push the price above $ 4,868.

If successful, the ETH / USDT pair could continue its bullish trend with the next target at $ 5,796. Conversely, if the price drops below the 50-day SMA, it suggests that traders may be rushing to exit. The pair could then fall to the strong support at $ 3,900.

BNB / USDT

The bulls tried again to push Binance Coin (BNB) above the overhead resistance at $ 669.30 on December 1, but failed. This suggests that bears continue to be a major challenge at higher levels.

BNB / USDT daily chart. Source: TradingView

The 20-day EMA ($ 602) has flattened and the RSI is near the middle, indicating a possible short-term range.

If the price drops below the 20-day EMA, the BNB / USDT pair could drop to the 50-day SMA ($ 564). This is an important level for the bulls to defend as a break below it could bring the price down to the 100-day SMA ($ 494).

On the contrary, if the price rises from current levels or the 50-day SMA, the bulls will attempt to push the pair above the resistance zone of $ 669.30 to $ 691.80.

SOL / USDT

Solana (SOL) broke and closed above the resistance line of the symmetrical triangle on December 1, but the bulls were unable to sustain the higher levels. The bears pulled course back into the triangle on December 3.

SOL / USDT daily chart. Source: TradingView

If price rebounds from the 20-day EMA ($ 215) the bulls will make another attempt to start the upward move by pushing the SOL / USDT pair above the overhead resistance at $ 243.12.

Contrary to this assumption, if price falls below the 50-day SMA (USD 210), it suggests that the recent break above the resistance line may have been a bull trap. The bears will then attempt to bring the price below the triangle’s support line.

A break and close below the 100-day SMA ($ 178) could trigger a deeper correction that could hit $ 140.

ADA / USDT

Cardano (ADA) rallied strongly on December 2nd but hit a wall at the 20-day EMA ($ 1.72). The bulls’ failure to break the overhead hurdle may have sparked heavy selling among the bears.

ADA / USDT daily chart. Source: TradingView

Sellers will now attempt to lower the price to the strong support zone at $ 1.50-1.41. This is important support for the bears to be defended because if it cracks, sales could accelerate and the ADA / USDT pair could begin its downtrend to the USD 1 level.

Contrary to this assumption, this indicates a buy at lower levels when the price is outside the support zone. The bulls will then make one more attempt to push the price above the 20-day EMA. If so, the pair could rally to the 50-day SMA ($ 1.94).

XRP / USDT

That Ripple (XRP) fails to break through and hold the $ 1 psychological level suggests that bears are selling aggressively on smaller rallies. The price has come down and the bears will now attempt to pull the price towards the strong support at $ 0.85.

XRP / USDT daily chart. Source: TradingView

The falling 20-day EMA ($ 1.02) and the RSI below 37 indicate sellers are in control. If bears sink and hold the price below $ 0.85, the XRP / USDT pair could fall to the nearest support at $ 0.70.

On the flip side, if price rises from current levels or USD 0.85 support and breaks above the 20-day EMA, it suggests that selling pressures may ease. The pair could then move to the 50-day SMA ($ 1.09).

DOT / USDT

Polkadot (DOT) went down from the break in the H&S pattern at $ 38.70 on November 30, breaking the 100-day SMA ($ 37). The bears will now attempt to pull the price towards the strong support at $ 32.21.

DOT / USDT daily chart. Source: TradingView

If this level breaks, sales could intensify and the DOT / USDT pair could fall to the nearest support at USD 26. The falling 20-day EMA ($ 39) and the RSI in negative territory suggest that the bears have the upper hand.

Conversely, if the price rises from current levels and breaks above the 20-day EMA, it indicates that the markets have rejected the lower levels. This can catch several aggressive bears, resulting in brief cover. The pair could then climb to the 50-day SMA ($ 43) and then to $ 47.50 later.

Related: NFT music platforms will disrupt Spotify in 2022, Saxo Bank predicts

DOGE / USDT

The bulls have repeatedly failed to push Dogecoin (DOGE) above the 20-day EMA ($ 0.22) in the past few days, suggesting sentiment remains negative and bears are selling on rallies.

DOGE / USDT daily chart. Source: TradingView

The 20-day EMA is sloping down and the RSI is below 36, suggesting that the path of least resistance is on the downside. If bears drag the price below $ 0.19, the DOGE / USDT pair could hit the critical support at $ 0.15.

On the flip side, if price rises from current levels or bounces off $ 0.19 and breaks above the 20-day EMA, it indicates heavy accumulation at lower levels. The pair could then rebound to the 50-day SMA ($ 0.24).

MOON / USDT

Terra’s LUNA token broke the moving averages and gained momentum on November 28. Strong buying by the bulls pushed the price to a new all-time high on November 30th, suggesting a resumption of the uptrend.

LUNA / USDT daily chart. Source: TradingView

The bears failure to halt the upward move at the resistance level suggests aggressive buying by the bulls. If the price holds above the channel, the LUNA / USDT pair could rise to $ 85.07.

On the contrary, if the price declines and falls back into the channel, it indicates that traders are posting profits at higher levels. The pair could then hit the 20-day EMA ($ 51).

If price rebounds from these levels, it suggests that sentiment will remain positive, while a break below the 20-day EMA could push the price to the support line of the channel.

AVAX / USDT

Avalanche (AVAX) moved down from the 61.8% Fibonacci retracement level at $ 129.26 on December 1st. This could have sparked profit bookings from traders who pushed the price below the 20-day EMA ($ 109) on December 2nd.

AVAX / USDT daily chart. Source: TradingView

The flattening 20-day EMA and the RSI near the middle point to a balance between supply and demand.

If the bulls push and hold price above the 20-day EMA again, the AVAX / USDT pair could rise to $ 129.26. Breaking and closing above this level could open the doors to a possible retest of the all-time high at $ 147.

Alternatively, if price fails to hold above the 20-day EMA, it suggests that traders are selling on small rallies. The bears will then attempt to bring the price below the $ 100 psychological assistance level. If so, the pair could fall to the 50-day SMA ($ 87).

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.

Market data is provided by HitBTC Exchange.