The crypto market is currently in a bear market, falling from around 60,000 USD to below 40,000 USD even though the prices briefly dipped as low as 31k USD. One of the major reasons were negative comments from Elon Musk as well as other factors, e.g. rising concerns about inflation in United States and the negative slopes of the BTC futures curve.
After a steep rise over several months, some correction is however not that surprising. After all, the bitcoin market cap went over 1 trillion USD at the ATH, which is comparable to some of the biggest companies like Apple, Amazon, Google and Microsoft. Ethereum with ticker ETH, the second largest cryptocurrency also attained the market capitalization of almost 500 billion USD. Again another milestone.
In recent days there was another factor at play testing BTC and ETH support, resistance levels, namely decision of China to be more stringent in its dealings with cryptocurrency miners. Mining is what ensures the trading of Bitcoin all over the worlds so any moves against the mining industry are a negative factor.
So now wonder, that the price was weak on that latest news as well. At BittsAnalytics, ETH support, resistance levels as well as support, resistance levels for 300+ cryptocurrencies are computed on the daily level.
Here is an example screenshot of ETH support and resistance levels:
We can see that the Ethereum made such rapid gains in the last period that there almost no major support levels above 1800. This gain came after Bitcoin hit a bit of a ceiling in terms of price, so some people made a rotation from Bitcoin and also Dogecoin to the Ethereum.
Will be interesting to watch what happens with Ethereum and Bitcoin over the next few weeks.