Ethereum
Market crash. Bitcoin and Ethereum wobble
10:00 a.m. ▪ 4 min reading ▪ by Evans S.
Cryptocurrencies are going through a tumultuous period, marked by a significant drop in prices. Bitcoin and Ethereum, the two main cryptocurrencies, are particularly affected. This decline raises questions about the future of the market and the forces at play. Let’s analyze this situation in detail.
Selling pressure: a threat to Bitcoin
Bitcoin, often seen as a safe haven in the crypto sphere, is not immune to market fluctuations. The crucial support level to watch on the daily chart is $66,205. This threshold coincides with a major resistance line.
A close below this level could intensify selling pressure, leading to further price declines.
Conversely, the most important level of resistance for Bitcoin, it’s $69,667. Recently, this level has generated strong resistance pressure, preventing the price from moving higher.
A daily close above this threshold could revive hopes of an upward trend. Investors should remain cautious, however, as market movements are often unpredictable.
If the flagship crypto closes below $66,205, selling pressure could accelerate. This situation could push the price to new lows, further eroding investor confidence.
Increased market volatility increases risks, making forecasting difficult. Traders should therefore closely monitor these critical levels.
Ethereum: between consolidation and selling pressure
Ethereum, the second largest cryptocurrency, is also under significant pressure. On the daily chart, a consolidation appeared after breaking out of a triangle pattern.
This consolidation is often a sign of stability, but the current selling pressure has broken the key support level.
For crypto ETH, the most important level of support is $3,502. A daily close below this level could trigger an increase in selling pressure, negating recent bullish ETF-related gains. This situation would be worrying for investors who were hoping for a lasting rebound.
The key resistance level for this cryptocurrency is the average 9 EMA of $3,689. A daily close above this level could provide a boost to the price, paving the way for a recovery. However, the market remains fragile and investors must remain vigilant against unpredictable fluctuations.
In the coming days, Ethereum’s behavior around support and resistance levels will determine its trajectory.
Investors must be prepared to react quickly to market movements to minimize losses and maximize potential gains. Patience and caution are required during these uncertain times.
Macroeconomic factors: a determining influence
Bitcoin and crypto ETH price fluctuations cannot be fully understood without examining macroeconomic factors. The global economic situation plays a crucial role in the movements of cryptocurrencies.
Economic reports, such as US employment data, have a significant impact on the cryptocurrency market.
For example, a recent report found stronger-than-expected job growth in May, contributing to Bitcoin’s decline. This data influences investors’ decisions and trading strategies.
Decisions by central banks, notably the US Federal Reserve and the European Central Bank, also affect cryptocurrencies. For example, lower interest rates can make risky assets like Bitcoin more attractive. However, uncertainties surrounding future central bank decisions add a layer of complexity to market analysis.
General investor sentiment also plays a role. Fear, uncertainty, and doubt (FUD) can lead to sell-offs, while excessive optimism can lead to impulsive buying.
Investors must remain informed and vigilant, taking a proactive approach to risk management. Caution is advised in this uncertain landscape. The future of cryptocurrencies remains promising, but the path is strewn with pitfalls. Indeed, the risk of liquidation persists around 71k.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped researching the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.