on US tech stocks was a significant theme in US trading yesterday, dragging
cryptocurrencies down. The Crypto market capitalisation adjusted 1.1% overnight
to $2.05 trillion.
is losing 2% overnight, down to $42.8K, and ether is losing about 1.5% to
$3.3K. Other top coins are declining with much less amplitude, as investment
fund darlings rather than crypto enthusiasts have been hit the hardest.
Doge, which has become accepted as a means of payment for some (inexpensive)
Tesla goods, deserves a separate story. Some have noted that goods for Doge are
selling out even faster than for dollars. On this news, the coin is adding 18%
today at $0.20, near the highs for the month.
news is a good illustration of crypto’s continued penetration of corporate
culture. On the other hand, Tesla won’t necessarily hold these coins forever.
People will be more active in spending their investments in DOGE.
technical view of the ETHUSD is disappointing because the selling intensified
earlier in the week while it tried to break the 200 SMA again. The dip and
consolidation below suggest a break of the bullish trend formed in May 2020,
when the pair consolidated above this line.
a worst-case scenario, it could be a road to $1300-1700, about half of the
current levels. It is doubtful that in this bear market cycle, the price of
ether will lose 95% of its peak, as it did in 2018, which could completely
nullify the rise from 2020.
disposition is no less worrisome. A death cross forms in it as the 50-day dips
below the 200-day. At the same time, the price is below these averages, which
reinforces the bearish signal. Attempts earlier in the week to form a rebound
are encountering more substantial selling, further indicating seller pressure.
bearish picture in Ether and Bitcoin makes the entire cryptocurrency sector
appear cautious in the near term. Individual growth stories, like DOGE, run the
risk of quickly losing strength today when the overall backdrop turns negative.
article was written by FxPro’s Senior
Market Analyst Alex Kuptsikevich.