Ethereum Plunges Amid Bitcoin Meltdown: Is This The Bear Market’s Breaking Point?

Ethereum gets hammered as Bitcoin's collapse triggers crypto-wide carnage.

The Domino Effect

Bitcoin's nosedive didn't just rattle cages—it tore the whole zoo apart. Ethereum caught the worst of it, shedding value faster than Wall Street sheds ethics during a bull run.

Market Contagion Spreads

When Bitcoin sneezes, the entire crypto market catches pneumonia. This wasn't just a correction—it was a full-scale retreat as traders scrambled for exits simultaneously.

The Psychology of Panic

Fear breeds more fear. The initial dip triggered margin calls, which forced more selling, which—you guessed it—triggered even more margin calls. A beautiful, self-reinforcing cycle of despair.

Silver Linings Playbook

Smart money's already circling. These fire sales create entry points we haven't seen in months. Remember—they called Bitcoin dead at $3,000 too.

Blood in the streets usually means opportunity's knocking. Unless you're over-leveraged—then it means your broker's knocking.

Ethereum Price Corrects Gains

Ethereum price traded to a new all-time high above the $4,950 level before the bears appeared, unlike Bitcoin. ETH price started a downside correction below the $4,800 and $4,750 levels.

There was a MOVE below the $4,650 support. The price dipped below the 50% Fib retracement level of the upward move from the $4,065 swing low to the $4,956 high. Besides, there is a key bearish trend line forming with resistance at $4,510 on the hourly chart of ETH/USD.

Ethereum price is now trading below $4,550 and the 100-hourly Simple Moving Average. On the upside, the price could face resistance NEAR the $4,500 level and the trend line. The next key resistance is near the $4,550 level.

The first major resistance is near the $4,620 level. A clear move above the $4,620 resistance might send the price toward the $4,750 resistance. An upside break above the $4,750 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,880 resistance zone or even $5,000 in the near term.

Another Drop In ETH?

If ethereum fails to clear the $4,550 resistance, it could continue to move down. Initial support on the downside is near the $4,350 level. The first major support sits near the $4,280 zone and the 76.4% Fib retracement level of the upward move from the $4,065 swing low to the $4,956 high.

A clear move below the $4,280 support might push the price toward the $4,150 support. Any more losses might send the price toward the $4,120 support level in the near term. The next key support sits at $4,065.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,280

Major Resistance Level – $4,550