Altcoins Plunge as Ethereum Faces Stiff Resistance at $3,550 – Is This the Dip to Buy?

Crypto markets got sucker-punched today as altcoins bled out while ETH stalled below a critical level. Here's what's rattling traders—and why the smart money might see this as an opportunity.

Altcoins Get Mauled in Broad Sell-Off

Minor coins got crushed harder than a no-name ICO when Bitcoin sneezes. Double-digit percentage drops swept through second-tier tokens as risk appetite evaporated faster than a DeFi rug pull.

Ethereum's $3,550 Wall Stands Firm

The ETH bulls just faceplanted at the same resistance level that's thwarted them since last week. Market makers aren't impressed—liquidity's drying up like a yield farmer's profits when APYs normalize.

Meanwhile, institutional traders are circling like vultures, waiting to scoop up discounted assets before the next narrative shift. Because nothing makes Wall Street happier than buying retail's panic sells at a 30% discount.

Analysis of ETHBTC Chart

Gains exceeding 40% have been quite satisfactory for short-term investors, making it unreasonable for them to take risks associated with the Federal Reserve meeting. While there are still strong reasons for continued upward movement, it was challenging to avoid the anticipated correction in the short term. As mentioned two days ago, after ETHBTC parity’s bounce from resistance, the scenario progressed towards our expectations, and indeed, it materialized.

Crypto Traders Are Rushing to This App – Here’s Why You Should Too

We wrote about the progression towards a test at the 0.033BTC level, suggesting significant gains for altcoins during this process. However, resistance could not be overcome due to profit-taking, leading to a retreat towards the 0.03 level, as anticipated. If concerns related to the Federal Reserve persist, closures below 0.0294 could trigger more altcoin sales, with losses extending towards the 0.0276 and 0.027 levels.

The 0.0262 zone remains a critical point where it will be determined whether the recent rally will continue after a few weeks’ pause. Losing this level WOULD be painful, possibly bringing a 0.0249 test into play. Currently, the main chart to watch is this one, and a test of $3,400 for ETH seems possible in the short term, albeit with a lower wick.

Insights on FLOKI Coin

At the time of this writing, TRUMP is commenting on AI. DOGE, SHIB, XRP, ADA, and SOL are continuing their day with losses ranging between 7% and 12%. Moustache believes that we might observe further rises for FLOKI Coin, especially since BNB Coin has reached an all-time high recently.

“After four months since the last FLOKI shipment, the price increased by 150%. BNB reached a new ATH recently. As the most popular meme on the BNB network, this is extremely positive for FLOKI. It’s not over yet. Wait until the breakout upwards.”

Of course, Moustache cannot predict the future, and the quoted four-month period saw significant losses as well. If ETH initiates a swift turnaround, the scenario projected for FLOKI Coin may unfold. However, the current outlook remains quite risky.