Bitcoin and Ethereum Prices Plunge - Technical Charts Reveal Critical Next Moves
Crypto markets just got rocked. Bitcoin and Ethereum took a nosedive that sent shockwaves through digital asset portfolios worldwide.
Reading the Tea Leaves
Technical indicators aren't panicking like traders. Chart patterns suggest this might be a healthy correction rather than a full-blown collapse. Key support levels held where it mattered—proving institutional money hasn't abandoned ship.
The Bounce Back Potential
Market structure shows accumulation happening beneath the surface. Smart money's buying this dip while retail investors flee—classic Wall Street behavior, just with blockchain flavor. Trading volumes spiked during the decline, indicating real conviction behind the moves.
Long-term technical setups remain intact despite short-term panic. Moving averages that matter haven't broken, and relative strength readings suggest oversold conditions that typically precede rebounds.
Remember when traditional finance types said crypto was dead last time this happened? They're probably saying it again while quietly accumulating positions—the ultimate finance hypocrisy.
Bitcoin Is Testing Range Highs And Trend Anchors
Technical analysis laid out by TraderMercury on the social media platform X noted that Bitcoin is currently bouncing from the previous range highs, along with the 12-hour 200MAs trend. In other words, Bitcoin’s price action has dipped down to a confluence zone where resistance and the 200-period moving averages on the 12-hour timeframe converge. That zone is acting as a pivot. If buyers defend it, the correction may be contained. However, if they don’t, the downside could open further.
There are still signs of life and buyer interest around that region, which is positive in the short term. But the higher-timeframe outlook, as TraderMercury stated, is “dauntingly boring and choppy.” This is pointing to the bitcoin price’s oscillation without strong directional conviction on mid and high frames. That means any breakout (up or down) could be a clearer signal of where momentum wants to take things next.
A notable red flag is if Bitcoin’s price begins to drift back inside the prior 8-month range below $108,000. That WOULD indicate a failure of the breakout move that preceded it, and potentially signal a return to range dynamics or worse. The more bullish scenario is that Bitcoin carves out a move away from that range. Until then, the 12-hour and daily moving averages, plus the prior horizontal pivots around $108,000 to $111,000, will all act as tension zones to monitor.
Ethereum Maintains Favorable Context On Higher Timeframes
Despite breaking below $4,000, Ethereum has steadily maintained above a 4-year range. However, the most recent downtrend means that it has lost the 200MAs on the 4-hour candlestick timeframe chart. According to TraderMercury, this is an objective weakness that has been seen only one other time in the past five months.
However, this weakness doesn’t translate into a full-blown bearish narrative. Ethereum’s price action lost the same trend back in May, only for it to carve out a higher low on the weekly and resume upward movement into new highs. Therefore, the market only becomes dangerous for ETH if its price breaks below $3,900. That’s a threshold TraderMercury flagged as a point of no return for the current setup.
Until then, a reclaim of major higher averages on the daily to weekly timeframe, for instance, would act as a clean risk-on bullish signal if it happens soon.
$3,900 is the line in the SAND for Ethereum. A bounce is always possible if it can hold above that and begin to re-engage with multi-month moving averages. If that fails, deeper support could come into play around $3,600.
At the time of writing, Bitcoin is trading at $109,600, and Ethereum is trading at $3,940.
