Ethereum slipped below a critical level a few minutes ago. The asset breaks this vital support following worsening economic conditions.
The coin is experiencing yet another massive selloff after its bearish performance on Sunday. The largest cryptocurrency registered one of its most significant declines, dipping from $2,211 to a low of $1,988. It slightly recovered but closed above 2k.
Ethereum was off to a good start on Monday but took a turn for the worse as fundamentals spread more panic across the market.
Donald Trump admitted that the ongoing trade war may cause economic hardship for Americans. He reiterated that the hard time may be short. Following the president’s comments, further reports suggest that a recession may be on the horizon.
The crypto market responded negatively to the announcement. The top assets in the top 10 lost several key levels, and the largest altcoin is not exempt from the decline. It retraced from its previous surge to $2,152, dipping to a low of $1,901.
The latest decline may be different from the previous dips. This is the lowest the cryptocurrency has hit since 2023. It may also signal the start of the bear market.
The struggling asset shows no signs of halting its descent as trading conditions worsen. A few minutes ago, it slipped below $1,900, trading over 6% lower than its opening price.
CryptoQuant Shows Massive Exchange Inflow
Data from CryptoQuant suggests that the traders are moving more assets into exchanges in a bid to sell. The latest increase in exchange inflow comes amid the growing fear and increasing exchange reserves. The whales are not the only participants in this round of selloffs. A sharp increase in transfer volume in the last 24 hours suggests that small bag holders are participating.
Active Addresses increased by over 4% as transactions improved by 2%. The dwindling faith in the apex altcoin extends into the derivatives market. Open interest has since declined by over 6%, with funding rates seeing a similar decline.
Data from DefiLlama points to a gradual decline in total volume locked. The number of ETH TVL significantly declined over the last three days. Revenue is fluctuating as inflows dwindle due to the ongoing market trends.
Ethereum Remains Bearish
The one-day chart shows that every indicator is negative at the time of writing. A few days ago, the moving average convergence divergence displayed a bearish interception. It continues the downtrend as the largest altcoin sees less buying pressure.
Ethereum is close to being oversold. The largest altcoin experienced massive selloffs a few days ago, and its relative strength index slipped below 30. It has since recovered but may repeat the trend of the increasing selling pressure. The metric is currently at 30.
Although the Bollinger bands may indicate an impending buyback, it is expanding. The expansion suggests growing volatility due to the consistent declines. The apex altcoin currently trades within the bands.
Other cryptocurrencies with the Ethereum ecosystem are grappling with massive selling pressure. SPX6900 lost over 24% in the last 24 hours. Other memecoins like MOG and DOGE are down by over 14%.
Ethereum Classic surged to a high of $18.7 but retraced to a low of $16.7. It shows signs of a slight recovery, trading above $17 at the time of writing.
