Altcoins
Ethereum Price Bullish Momentum Fades: 8% Pullback Likely
Cryptocurrency prices plunged on Monday as investors reflected on last week’s strong jobs numbers from the United States. Ethereum price pulled back to a low of $1,620, which was much lower than its last week’s high of $1,716. Similarly, Bitcoin plunged to $22,750 while other coins like Solana and Binance Coin also plunged.
Strong NFP data
The main catalyst for the recent crypto performance was last week’s American non-farm payrolls (NFP) data. According to the Bureau of Labor Statistics, the American economy added over 500k jobs in January, the best month in over 5 months. These job additions helped drag the unemployment rate to 3.4%, the lowest level in over 50 years.
The strong NFP numbers came a day after the Federal Reserve delivered its first interest rate decision of the year. In it, the bank delivered a normal rate hike of 0.25%. Before that, the Fed increased interest rates by 0.50% in December followed by 0.75% in the previous four meetings.
Therefore, the strong jobs numbers mean that the Fed will continue hiking interest rates in the coming months. With inflation rate still above the Fed’s target of 2.0%, there is a likelihood that the bank will hike by 0.25% in its March meeting. The terminal rate will be at 5.5%.
Historically, risk assets like cryptocurrencies tend to underperform in a period of hig interest rates. This also explains why American indices like the Dow Jones and the Nasdaq 100 index have all plunged after the recent jobs numbers.
Ethereum price prediction
Turning to the 4H chart, we see that the Ethereum price has formed what looks like a double-top pattern around the $1,700 level. This pattern is one of the most accurate bearish patterns in the industry. The 25-day and 50-day moving averages have also made a bearish crossover pattern. It is also clear that the coin has lost the bullish momentum that it had a few weeks ago.
Therefore, the coin will likely have a bearish breakout as sellers target the key psychological level at $1,500. This price is about 8% below the current level. The stop-loss of this trade will be at $1,680.
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Fundamentals
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the…
Cardano price has been under intense pressure for the past few days as Silvergate poses for a potential bankruptcy. ADA has slipped by more than 7% in the past week but remains 32% higher in the year to date. At the time of writing, ADA was 2.54% lower at $0.3221, while its total market cap inched nearly 1% lower. Cardano ranks as the 7th largest cryptocurrency by market cap after XRP and above Polygon.
Fundamental Analysis
Cardano price has recorded a sharp decline for the past few days as Silvergate’s crisis continues to weigh on cryptocurrencies. Silvergate Capital is a Californian bank that pioneered money transactions between cryptocurrencies and hard cash. The Silvergate crisis looks to be the next big failure after the collapse of FTX and Terra’s LUNA meltdown.
Data by Coinmarketcap show that the global crypto market cap has continued to move lower to $1.01 trillion, pointing to a bearish outlook in the crypto market. Bitcoin’s dominance has also inched lower as the digital asset remains at the $22,000 level.
Fears of higher interest rates by the US Federal Reserve have been gnawing at the markets, following Powell’s hawkish tone. Fed chair Jerome Powell announced on Tuesday that the Federal Reserve is prepared to return to bigger interest rate hikes in a bid to fight inflation.
The US central bank has been struggling to cool the economy despite a year-long campaign of…
-
Altcoins2 weeks agoCardano Price Sets Out for an 8% Slip Amid Silvergate’s Crisis and a Hawkish Fed
-
featured2 weeks agoXRP Price: Ripple Tumbles as Silvergate’s Shares Dip Amid Financial Uncertainty
-
featured2 weeks agoLitecoin Price: LTC Holds Bearish Stance as Silvergate’s Crisis Deepens
-
Bitcoin1 week agoBitcoin Price Slips Below $20,000 Amid Silvergate’s Liquidation and Macroeconomic Concerns
-
Bitcoin5 days agoBitcoin Price Extends Rally as Latest US CPI Reading Falls in Line With Market Expectations
-
Altcoins1 week agoEthereum Price: ETH Jumped 10% Over the Weekend, What Next?
-
Altcoins3 days agoSolana Price: Technicals Point to a Sell
-
Bitcoin2 hours agoBitcoin Price Jumps to Highest Level in 9 Months on the Back of the UBS Merger Deal
