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Ethereum (ETH) Hammered Down To $950 As Crypto Selloff Deepens

Ethereum (ETH) has fallen below $1,000 for the first time in more than a year as the broader crypto market continues to slide south with no quick remedy in sight, or at least not yet.

Ether (ETH) was one of the cryptocurrencies that performed particularly poorly, falling 7.32 percent over the past day to follow Bitcoin’s loss. The second largest cryptocurrency by market capitalization is presently selling at $950, down 37.4 percent in the past week.

Examining the bitcoin market as a whole over the previous two weeks reveals that its entirety has been falling. This decline has deepened over the past week, wiping almost $300 billion from the market value of all cryptocurrencies.

Suggested Reading | Bitcoin (BTC) Drops Below $18,000 – What Can Stave Off The Selloff?

Ethereum Loses Over Half Of Its Value In 7 Days

However, it is not simply crypto that’s experiencing a major beat-down. Wall Street is likewise in disarray, as the S&P 500 has shed 4.25 percent over the past week. During the same time frame, the Dow Jones Industrial Average fell 4 percent, while the NASDAQ dropped sharply less than 2 percent.

As is normal when Bitcoin declines, so do alternative cryptocurrencies. This negative trend is led by Ethereum, which has fallen below $1,000 for the first time since January 2021. In approximately seven days, ETH has lost more than half of its value.

In reaction to worries about the US central bank’s 75 basis point rate hike – the largest increase in the last three decades – both cryptocurrencies and stocks experienced a severe bear market.

ETH total market cap at $117 billion on the weekend chart | Source: TradingView.com

Following a similar daily decline, BNB also fell below the $200 round-number threshold. Cardano, Solana, Ripple, Dogecoin, Pokadot, Siba Inu, and TRON, to name a few, are experiencing more difficulties.

More Pain In The Offing?

Analysts caution that additional losses are forthcoming. They stated that the Federal Reserve has just begun to increase interest rates and has not yet sold any assets from its balance sheet.

The U.S. Bureau of Labor Statistics also issued data for the Consumer Price Index (CPI) – a metric used to measure inflation – coming in at 8.6 percent for the month of May, which had an effect on the continuous volatility of cryptocurrencies.

Technically, ETH’s price must reclaim $1,000 as its psychological support; if this level is breached to the negative, the token may target $830 as its next objective.

In February 2018, the same level acted as resistance, preceding a 90% drop to roughly $80 in December 2018.

Suggested Reading | Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?

Featured image from Futurity, chart from TradingView.com

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Bitcoin (BTC) Drops Below $18,000 – What Can Stave Off The Selloff?

Bitcoin further sank to about $17,750 for the first time since December 2020 Saturday afternoon, as the selloff in the crypto market intensifies.

Bitcoin’s price is still falling steadily and is currently testing the 2017 all-time high range of $17,000 to $20,000. However, the descent shows no indication of abating, and analysts are  are not quite sure to call a bottom at this time.

The following hour, Ethereum followed suit and went below $1,000. These numbers were feared as crucial support levels for the top two coins by market capitalization.

Suggested Reading | Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?

The next several days could be crucial for Bitcoin, as a failure to establish support at this position could lead to a further market decline into the $15,000 mark.

Alternatively, if the price recovers from the current region, the $24,000 level would be the first hurdle before the key $30, 000 resistance and the 50-day moving average.

The current Crypto Winter differs from 2018 in that cryptocurrencies are falling alongside tech stocks as the broader economy is fragile, inflation is soaring, and a full-scale recession appears impending.

This year’s Crypto Winter is different from last year’s because cryptocurrencies and tech stocks are both in decline. Image: CNBC.

During the past week, the price of Bitcoin fell by more than 30 percent, and the market is arguably suffering maximum anxiety. A significant amount of coins that have been purchased and held over the past two years are being put into exchanges, as indicated by exchange inflows.

On Friday, Antoni Trenchev, the founder of cryptocurrency lender Nexo, stated on Bloomberg that the current slump “reminds me of the 1907 bank panic.”

Saturday, Kraken’s director of growth marketing and Bitcoin influencer Dan Held warned, “We are on the path of maximal pain.”

Bitcoin’s decline occurred over the course of several months, and was hastened in recent weeks by the collapse of two major cryptocurrency projects, Terra-Luna and Celsius, which further sowed worries about the market’s durability.

BTC total market cap at $350 billion on the weekend chart | Source: TradingView.com

Pressure from macroeconomic factors, such as growing inflation and a series of interest rate hikes by the Federal Reserve, also contributes to the calamity on the cryptocurrency market.

Market observers have also been keeping a close eye on top-tier cryptocurrencies as they track equities lower. It doesn’t help that crypto companies are issuing the pink slips and rendering a large number of people jobless, and that some of the industry’s most recognizable brands are facing solvency breakdowns.

Meanwhile, recent data from the analytics website Glassnode indicates that the revenue generated by Bitcoin miners has continued to decline. With rising mining expenses and a deteriorating macroeconomic environment, miners are now less motivated and profitable.

Suggested Reading | Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The Next Bottom?

Featured image from Domestika, chart from TradingView.com

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Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The Next Bottom?

The price of Bitcoin (BTC) is currently trading below the $20,000 mark, reaching a low of $19,147 on Saturday, according to statistics from Coingecko.

As the whole cryptocurrency market continues to be pummeled, the price of BTC has fallen below its 2017 all-time high of $20,000, and the market as a whole continues to suffer severe losses. At the time, reaching $19,500 was referred to as a “surge” associated with potential U.S. regulation of stablecoins.

The BTC/USD pair fell below $20,000 for the first time since December 2020, reaching $19,065 at press time, according to TradingView data.
Since November, the biggest cryptocurrency has lost more than 70 percent of its value.

Suggested Reading | The Sandbox (SAND) Blows Up 20% After Collab With Major Entertainment Firm

Bitcoin Drop Takes Toll On Market Sentiment

Bitcoin could make history this week by closing below the 200-week moving average, a rare occurrence. This phenomenon has only been observed five times in the past. Recent calculations indicate that Bitcoin’s 200-week moving average is approximately $21,700.

All cryptocurrencies are currently in the red as a result of a market-wide downturn. At the time of writing, Bitcoin’s market value has fallen further below the $1 trillion threshold, at $885 million.

As the price of bitcoin continues to decline, several market observers have expressed fear that sentiment could continue to spiral downward as well.

BTC total market cap at $368 billion on the weekend chart | Source: TradingView.com

As jitters increased following the Federal Reserve’s pronouncement on the inflation outlook, crypto markets suffered the brunt of a major selling that began with last week’s shocking Consumer Price Index (CPI) data.

Next Bottom At $15,500?

Traders now anticipate that the next Bitcoin low might occur at $15,500. The next BTC bottom might be around $19,000 or $15,500, according to Rekt Capital, a cryptocurrency trader, based on the coin’s historical statistics on weekly moving averages.

The failure of two major cryptocurrency projects, Terra Luna and Celsius, has contributed to Bitcoin’s collapse. Both were intended to be significant ways of promoting the stability of digital money, but they have eroded trust in the technology.

Suggested Reading | Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why

Meanwhile, the chief executive officer of Digital Currency Group, Barry Silbert, the CEO of Global Macro Investor, Raoul Pal, investor Scott Melker, and others indicated that they are buying the (Bitcoin) dip.

By declaring in a recent tweet that he is purchasing Bitcoin, Silbert has somehow eased the paranoia of cryptocurrency bulls.

The crypto tycoon has echoed the sentiments of MicroStrategy’s CEO Michael Saylor, who recently increased his optimism despite dealing with heavy losses.

Featured image from Forbes, chart from TradingView.com