Just a few days ago, the cryptocurrency industry was the talk of the town. With Bitcoin [BTC] surging over $40K, several institutional investors flooded their money into the market. However, the crypto market at the time of writing was seen covered in blood. All the assets, including Bitcoin, was slumping by a huge majority.
Bitcoin SV [BSV] was one of the major losers of this carnage. This fall of these assets got the whole crypto community speculating the possibility of a huge sell-off. Along with this, the market cap of the entire crypto industry dipped down below $1 trillion.
Ethereum loses big as the Market gears up for a trend reversal
Ethereum [ETH] was one of the stars of the recent crypto rally. The asset grew so close to hitting its ATH, however, it failed to do so. Despite this, the asset garnered immense support from the crypto community. Even Gemini’s Tyler Winkelvoss went on to tweet,
When in doubt, Ethereum
— Tyler Winklevoss (@tyler) January 9, 2021
While Ethereum’s price movement got everybody’s hopes up high, the asset was seen significantly plummeting over the last 24-hours. At the time of writing, ETH was trading for $1,104.82 with a 16.47% dip in the last 24-hours.
In the one-day price chart of ETH, the Bollinger Bands indicator insinuated an increase in volatility. This surge in volatility was dictated by the bands that were diverging.
The Relative Strength Index [RSI] indicator revealed that the asset was heading back from the overbought zone, but still revealed a buyers’ sentiment. Despite, the downfall in the altcoin’s price, the volume in its market was on track.
The bears were in the ETH market. The Parabolic SAR indicator formed dotted lines above the candlesticks on 10 January 2021 and the line seemed to have prolonged over time. This acted as a significant impediment to an upward breakout. The MACD indicator formed a bearish crossover as the signal line took over the MACD line.
While this drop in ETH and several other coins alarmed crypto HODLERS, prominent members of the crypto community including Samson Mow, the CSO of Blockstream as well as Cameron Winklevoss, the CEO of Gemini urged people to “BTFD” [Buy The F**king Dip].
— Samson Mow (@Excellion) January 10, 2021