Key Insights:
The crypto markets are expected to be slow in terms of growth in the next few weeks.
Major altcoins like Solana, XRP, and BNB have already shown deep corrections.
The ongoing FUD around Ethereum indicates that it may face a sell-off in the near future.
Crypto analyst Ali Martinez shows that ETH now rests on a key support zone below which it may risk crashing to $2000.
In the last 30 days, the crypto markets have shown a lot more correction than previously expected. Usually, the markets correct around 8 to 10% after each high. However, this time, it corrected around 30% for most altcoins.
Crypto Market Cap in the Last 30 Days
Ethereum fell to $2700 levels from $4000, a little more than a couple of months earlier. Solana corrected around $130 from its ATH of $294. BNB saw a similar fall from $793 to $656 within two and a half months.
The overall crypto market cap saw a correction of 17% from its ATH of $3.79 trillion and at press time, it was at $3.17 trillion. This lower rate of correction was mostly due to strength in Bitcoin.
Bitcoin stood strong despite correcting around 10%. This strength in BTC comes from strong corporate flows as MicroStrategy, Metaplanet, Riot Platforms, and other companies began buying in large quantities. At present, it dominates 60% of the crypto market cap.
Altcoin Market Cap
The altcoin marketcap on the other hand, corrected from $1.71 trillion to $1.25 trillion at press time. The largest fall recorded by a major altcoin was seen in Solana, which fell to $170 levels after breaking the support zone of $190. If it continues to fall further, SOL could reach $30 levels in the near future.
SOL USDT 1D Charts
The markets are in a bear mode lately because of lack of liquidity. Further, the positive crypto regulations are also expected to be delayed until the first report of the Working Group under David Sacks.
In its 18 Jan 2025 meeting, the US Federal Reserve claimed that inflation was still at a high level (nearly 3%) and hence it was necessary to hold policy rates (interest rates). The crypto markets received this as the confirmation that there would be little to no rate cuts.
The perception of a low liquidity scenario forced the markets to sell their crypto holdings. As a result, all cryptocurrencies saw corrections in the last 30 days.
Positive crypto regulations are not expected to enter the markets until the last week of June 2025 when the Working Group under David Sacks will submit its report. The group is tasked with exploring the scope of crypto regulations in the USA and form a Bitcoin reserve.
Another awaited decision is whether the US National Digital Asset Stockpile. If the present situation is to be believed, the crypto markets might see a multi-crypto stockpile and not just a Bitcoin stockpile. This multi-crypto stockpile could see addition from top US cryptocurrencies like XRP, LINK and ALGO.
This news created a debate between Bitcoin maximalists and other crypto investors, which then turned into a bitter war after Pierre Rochards claimed that XRP founder Brad Garlinghouse was lobbying against the Bitcoin Reserve.
Despite all, nothing concrete can be said at this moment on the nature of the reserves until the full working group report is submitted to the president by David Sacks.
Top crypto chart analyst Ali Martinez identified a upwards trending channel in which Ethereum has been moving since June 2022. The upward trending channel had successfully acted as a support for Ethereum during its decline and as a resistance during rallies.
In the last few days, Ethereum has again touched support of $2600 which as per this trend, is the lower part of the channel. If Ethereum breaks down below $2600, Ali says it could see a rapid fall towards $2000, which was one of the lowest levels achieved by ETH in the last few months.
However, on the positive side, it may give investors a golden opportunity to grab ETH. Lately, several whales have been buying ETH due to its undervalued price.
ETH-USDT Weekly Charts
Taking a look at the long term weekly charts of Ethereum, we see that the next target on the downside for Ethereum seems at $2200 below which it may sink to $2000 as shown by Ali Martinez.
On the upside, there is still a decent potential for recovery if Ethereum bounces above $3000 from current levels.
The indicators on ETH charts indicate that it may remain subdued for a few more days as MACD and RSI both indicate low price momentum for at least till next Monday.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.