- Global crypto market cap dropped by over $130 billion in 24 hours.
- Tensions between the US and China and Fed policy fears sparked sell-offs.
- Ethereum shows strength, with technicals hinting at a possible short-term rebound.
The crypto market has suffered a sharp decline, with major coins like Bitcoin, Ethereum, Dogecoin, and XRP all posting losses. Analysts point to two macroeconomic triggers: former U.S. President Donald Trump’s harsh remarks about China violating trade agreements, and increasing speculation that the Federal Reserve won’t cut interest rates soon.
Despite the sell-off, Ethereum is holding its ground better than most altcoins. Trading just above $2,550, ETH sits on a crucial support level. Technical indicators such as the TD Sequential show a potential bullish reversal if ETH maintains this zone, suggesting a short-term rally to $2,650.
Ethereum Resilience Stands Out Amid Crypto Market Bloodbath
Bitcoin dropped to around $103,587, down over 2% daily, with trading volumes also tapering. This decline contributed significantly to the market-wide $130 billion wipeout. Dogecoin saw the steepest drop among top tokens, illustrating the risk-off tone dominating altcoin sentiment.
Ethereum, however, is drawing investor interest for its relative strength. It has not only held above $2,400 but is consolidating in a high-demand zone. Technical analysts see this as a bullish setup, with a TD Sequential buy signal flashing on the 4-hour chart—often a precursor to price rebounds.
The macro backdrop is still weighing heavily. Persistent inflation, rising Treasury yields, and geopolitical tension between the U.S. and China have injected uncertainty across all financial markets. Crypto, while resilient, remains sensitive to shifts in these narratives.
Looking ahead, if ETH breaks past $2,650 and Bitcoin reclaims lost ground, altcoins could follow in a broader relief rally. For now, traders are treading cautiously, waiting for confirmation of either trend reversal or continued downside pressure.
While the current downturn reflects global uncertainty, Ethereum’s technical setup offers a glimmer of hope—suggesting the market may not be done just yet.
“Markets are driven by fear and greed; today, fear has the wheel, but strength under pressure often signals the next rally.” – Anonymous Crypto Analyst
