The global financial landscape is currently in turmoil, with the Bank of Japan’s interest rate hike serving as the catalyst for a massive sell-off across all markets. Cryptocurrencies like Bitcoin and Ethereum are not immune to these broader macroeconomic forces, and investors should brace for potential further declines.
The situation with Ethereum, the second-largest cryptocurrency, also presents concerns. Ethereum is currently testing a multi-year line of support, bouncing off this crucial level as it faces immense selling pressure.
Analyst Josh of Crypto World said that when examining Ethereum on the 3-day time frame, it’s clear that the recent drop followed a bearish signal. The critical moment came when Ethereum fell below the $2,800 level, triggering a substantial sell-off across the market. Currently, Ethereum is holding near the 50% retracement level around $2,200, providing short-term support after the sharp decline. However, despite the bounce from the “golden pocket” support zone between $2,100 and $2,200, the overall trend remains bearish.
Looking at the 3-day RSI for Ethereum, it’s approaching oversold territory, a situation not seen since September of last year, which coincided with a local low. On a weekly time frame, Ethereum is showing resilience, bouncing from multiple key support areas, including a long-term ascending trendline around $2,100. This confluence of support suggests it’s unlikely for Ethereum to drop further in the short term, potentially marking a local bottom.
For Solana, the analyst observed a similar pattern, with the price holding above a crucial support zone between $120 and $128. Although there was a brief dip below this support, the daily RSI suggests that Solana, like Ethereum and Bitcoin, might have found a local low. However, there is still considerable resistance above, particularly around $153, $159, $170, and $183, making any short-term recovery challenging.
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