Crypto Market Faces Major Setback: Bitcoin And Ethereum Plummet
By: Eva Baxter
The cryptocurrency market has faced significant turmoil as Bitcoin fell to $53,000, marking a sharp decline. Similarly, Ethereum's price has seen a steep drop, crashing over 20% and raising concerns among investors. These developments have caused widespread panic across markets, particularly in Japan, where the Nikkei index experienced a 6% fall early Monday, culminating in a three-day decline of about 15%.
Ethereum's valuation began its downward spiral after breaking the crucial $3,000 support level. This collapse triggered a series of events, causing Ethereum to dip below the $2,800 and $2,650 benchmarks. Currently, Ethereum is trading below $2,500 and is struggling to break free from its bearish trend. A key resistance point has formed around $2,500 on the hourly ETH/USD chart, which suggests that a possible recovery wave may be on the horizon once this resistance level is cleared.
Bitcoin's performance has been equally troubling. The cryptocurrency plummeted to $53,000, creating a ripple effect throughout the market. The sentiment index that tracks the crypto markets has shifted to 'fear', indicating a possible local bottom may be approaching. This sentiment change could mean that the worst is over, but caution remains the watchword for traders and investors alike.
The recent downturn in both Bitcoin and Ethereum has also led to unprecedented liquidations in crypto futures markets. Over $1 billion in liquidations were recorded, marking the most significant slump since 2021. As panic grips the market, the focus is now on potential recovery pathways for these leading cryptocurrencies. Traders are keeping a close eye on key resistance and support levels. For Ethereum, breaking past the $2,500 barrier could pave the way for a rebound towards the $3,000 mark. Meanwhile, Bitcoin needs to regain stability above $53,000 to restore investor confidence.
As the market faces these massive fluctuations, the technical indicators, such as the hourly MACD and RSI for Ethereum, are signaling potential for a bearish phase. The RSI is currently below 50, suggesting that sellers remain in control. For now, traders and investors are advised to exercise caution and closely monitor market movements as these volatile conditions persist.
