The weakness of Bitcoin, despite the significant drops in the dollar index and yields, is putting some pressure on Ethereum, which is down nearly 4.5% today. The second-largest cryptocurrency hasn't seen much interest from 'bullish speculators' recently, as the crypto market remains tense ahead of the next volatility impulse from Bitcoin, which has lost nearly 5% since Monday and is testing the $61,500 USD level today. In total, over $2 billion has flowed into U.S. Ethereum ETFs, with iShares (BlackRock) alone collecting well over $1 billion in net inflows
- Despite this, the market sees bleak prospects for further broad capital inflows into the sector, as investors wait for a 'signal' to continue the stock market rally. In recent days, the Ethereum Foundation transferred $100 million USD in ETH to the Kraken exchange and announced that it would regularly sell the tokens deposited on the exchange. The proceeds are intended to fund its ongoing operations
- At the same time, Vitalik Buterin and the developer team had difficult discussions, during which several developers accused the community of insufficient interest in further developing De-Fi technology. Strong resistance around $3,000, internal issues within Ethereum, and a lack of conviction regarding the next altcoin rally are weighing on ETH prices today
Ethereum (M30 interval)
A potential sell-off below $2,500, where the 61.8% Fibonacci retracement of the 2023 upward wave can be found, could signal a retest of recent lows, i.e., around $2,250 (71.6% Fibonacci retracement), and, in an extreme case, even $2,000.
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Source: xStation5
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