The cryptocurrency market has experienced a significant downturn of over 5% overnight, largely due to the recently announced tariff plan and a wave of massive liquidations. This has resulted in a staggering loss of over $110 billion for the industry, bringing the total market value to just above the $3 trillion mark. As a result, market leaders have struggled to maintain their important support levels, signaling a heightened bearish sentiment in the market.
In particular, Ethereum, the leader of altcoins, has been displaying a strong bearish reversal in its price action. The price of Ethereum has plummeted by approximately 10% in the span of 24 hours, with a trading volume of $31.750 billion, representing a significant increase of 49.93%. Over the past week, Ethereum has lost 7.18% of its value, and over the past 30 days, it has seen a decline of 25.17%. With a market cap of $300.901 billion, Ethereum holds a market share of 10.1397%.
Technical indicators such as the Simple Moving Average (SMA) and the Moving Average Convergence Divergence (MACD) are painting a bearish picture for Ethereum’s price trajectory. The SMA has recorded a negative crossover on the Ethereum price chart, indicating a bearish outlook for the near future. Additionally, the MACD indicator shows a consistent decline in the green histogram on the daily time frame, with its averages on the brink of a bearish convergence, suggesting that Ethereum may continue to lose value in the coming days.
In terms of potential price movements, if the market sentiment turns bullish, Ethereum could retest its immediate resistance level of $2,870. Further bullish momentum could push the price towards its upper resistance level of $3,300. On the other hand, sustained bearish pressure could see Ethereum retesting its support trendline at $2,530, with a further drop potentially leading to a test of the lower support level at $2,175.
For investors wondering about the reasons behind Ethereum’s price drop, factors such as Donald Trump’s tariff announcement and the wave of massive liquidations have contributed to the current market conditions. Despite the current challenges, under an optimistic scenario, Ethereum’s price could potentially reach a new all-time high during this altcoin season.
As the cryptocurrency market continues to navigate through turbulent waters, it is essential for investors to stay informed and closely monitor market developments. By staying updated on the latest market analysis and trends, investors can make informed decisions to navigate the volatile cryptocurrency landscape effectively.