The cryptocurrency market witnessed a significant downturn as Bitcoin‘s price plunged to a 24-hour low moments before the day’s end, settling at $62,200 after briefly dipping to $61,555. Ethereum followed suit, trading slightly below its $3,200 support level at $3,175.
Cryptocurrency Market Faces Turbulence
Top cryptocurrencies including Bitcoin, Ethereum, and various altcoins such as SOL, ADA, and XRP encountered sharp drops, with some experiencing double-digit percentage losses. In particular, BNB and SOL Coin, which had recently overcome key resistance levels, faced declines that might set off further downward momentum in the market. The total market value of cryptocurrencies has retreated more than 15% from its peak of $2.77 trillion, recorded on March 14, to below $2.35 trillion.
Ethereum’s Struggle and Predicted Downtrend
Ethereum’s dominance in futures trading has weakened as the ETH long positions recently lost their leading status, causing the funding rate to drop to the lowest in three weeks. The market’s anticipation of an unfavorable outcome for the Spot Ethereum ETF decision on May 23 has cast a shadow over Ethereum’s medium-term prospects, hinting at a possible negative shift in investor sentiment.
The ETHBTC chart indicates a potential further decline for Ethereum against Bitcoin, with the possibility of reaching down to the 0.049 BTC support level, a low previously seen in mid-2021 and mid-2022. Ethereum’s performance in the ETHUSDT pair is also raising alarms, with the risk of dropping to levels of $2,900 or even $2,624 if current supports fail to hold.
The direction of Bitcoin’s price following the Federal Reserve meeting is expected to be a critical factor for the entire crypto market, including Ethereum and other cryptocurrencies, as they brace for either a rebound or a continued slide to new lows.