Altcoins
Ethereum Price is Struggling Below $1.9K: Time to Sell?
Ethereum price has been in a steep downtrend for the past few days ahead of the Fed’s two-day monetary policy meeting. The asset has been struggling below the crucial level of $1,900 over the past few days amid a decline in market sentiment. At press time, Ethereum was trading slightly lower at $1,855.
Economic Headwinds
Ethereum price has been under intense pressure for the past few days as the Fed’s two-day policy meeting sparks market jitters. The global crypto market cap has crashed over the last few days to $1.17 trillion, while the total crypto market volume decreased. Bitcoin, the largest cryptocurrency by market cap, has dropped below the critical $30,000 level, buoyed by the weak crypto market sentiment.
A look at the Crypto Fear and Greed Index shows that the confidence among investors about the crypto sector has continued to dwindle. The Index has declined from a Greed level of 63 last week to a neutral level of 52, indicating that most investors are in conservation mode.
The US Treasury yields climbed higher on Tuesday as the Federal Reserve is due to kick off its meeting. The meeting is expected to end on Wednesday when the central bank is expected to announce its interest rate decision. Markets are pricing in a 98.9% chance of the Fed implementing a 25 basis points interest rate hike after its meeting.
Investors will also be watching the guidance by the central bank and comments by the Fed chair, Jerome Powell, hunting for clues about the Fed’s monetary policy path. Additionally, the European Central Bank (ECB), as well as the Bank of Japan, is expected to meet later this week, when the policymakers are expected to announce their interest rate decisions.
Notably, investors will also be on the lookout for several key data points, including the Fed’s favorite inflation gauge, the personal consumption expenditures (PCE) index on Friday. The CB Consumer Confidence Index data for July is also slated to be published later today.
Ethereum Price Analysis
The daily chart shows that the Ethereum price has been on a steep decline for the past few days after facing a strong rejection at the important level of $2,000. During this period, ETH has managed to drop below and remain above the 50-day and 200-day exponential moving averages.
Its Relative Strength Index (RSI) has moved below the neutral line, with the Moving Average Convergence Divergence (MACD) indicator pointing to a sell signal. The Bollinger Bands have narrowed as indicated on the chart, showing a decline in volatility.
As such, the Ethereum price is likely to pull back further in the immediate term as concerns about a hawkish Fed continue to weigh on prices. If this happens, the next support levels to watch will be $1,845 and $1,775. On the other hand, a move past the bullish support level at $1,920 might push the price higher to $2,000, invalidating the bearish thesis.
Solana price has been struggling to break above the key resistance level of $21.10 over the past few days. Earlier in August, the digital asset encountered a strong rejection at the crucial resistance level of $25.45, curtailing gains above the fashionable level of $30. Even so, the smart contract token is among the best-performing cryptocurrencies so far this year, with a 102.61% jump in its year-to-date price. SOL’s total market cap has climbed by more than 5% over the last day to $8 billion, while the total volume of the asset traded over the same period increased by 40%.
Brighter Future Ahead?
Solana price faced significant challenges in 2022, including a 93% decline in its total market capitalization and a 96% drop in its total value locked (TVL). However, the SOL network has posted significant resilience in 2023, defying general market movements. Priority fees and network upgrades have contributed to a consistent 100% network uptime.
The Solana DeFi ecosystem has also shown significant recovery, with a 41% growth in the TVL. Its liquid staking derivatives have also played a role in the asset’s renaissance. The ecosystem has expanded into other sectors such as NFTs, gaming, and consumer-based applications, driven by technical advancements like state compression.
Notably, Solana recently admitted that the network has been facing difficulties in the decentralized finance (DeFi) sector. Even so, it believes that its new strategy will help it regain its foothold and…
Cardano price has been on a steep downward trajectory for the past few weeks on the back of a dull market and global macroeconomic concerns. The altcoin is down by nearly 6% in the month to date and more than 3% in the past week. Additionally, ADA price has shed more than 30% in the past six months, with its year-to-date price remaining in the red. Cardano’s total market cap has shrunk by more than 1% over the last day to $8.6 billion, while the total volume of the asset traded over the same period edged 13% lower.
Fundamentals
Cardano price has recorded significant losses in recent weeks in tandem with the global cryptocurrency market. Most of the digital assets have been treading waters over the past few weeks, with the premier cryptocurrency struggling to break above the crucial level of $27,000. The global crypto market cap has increased slightly over the past 24 hours, while the total crypto market volume decreased by 25%.
The Crypto Fear & Greed Index, which is a key measure of the emotions driving the cryptocurrency market, is a fear level of 39, slightly lower than the fear level of 42 recorded last week. A fear level usually indicates a decline in risk appetite by investors which might prompt traders to sell irrationally.
Investors have been assessing what could be ahead for the economy while weighing the outlook for interest rates after…
Dogecoin price has posted significant losses over the past few weeks amid bearish crypto market sentiment. The digital asset has slumped by 18.65% in the month to date and more than 13% in the year to date. Additionally, Dogecoin has shed more than 5% in the past week in the wake of a dull market. The asset’s total market cap has declined over the last day to $8.59 billion, ranking DOGE 8th after Solana. The total volume of the digital currency traded over the same period has also decreased by more than 18%.
Economic Concerns
Dogecoin price has been in the red for the past few weeks against the backdrop of weak market sentiment, a decline in risk appetite, and macroeconomic concerns. The overall crypto market cap has also been on a downward trajectory, with the crypto market cap down to $1.03 trillion, its lowest level since June. The total crypto market volume has decreased by more than 18% over the last 24 hours.
Traders have been in jitters over the past few weeks in the wake of global economic uncertainty. Data released on Wednesday showed that the UK economy contracted by 0.5% in July, ahead of the 0.2% expected. The Bank of England (BoE) is expected to raise its interest rates by 0.25% to 5.5% in its meeting next week in a bid to curb the high inflation rates. Ahead of the BoE, the European Central…
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