Crypto Market Tumbles Despite Ethereum ETF Approval

Crypto market dips despite Ethereum ETF approval, with Bitcoin facing potential correction and Lido showing resilience.
Crypto Market Tumbles Despite Ethereum ETF Approval

Key Insights

  • Despite the Ethereum ETF approval, the crypto market cap dropped by 2.63%. Bitcoin's dominance over the crypto market fell below 53%.

  • Leveraged traders lost $372 million due to the price decline, with bulls suffering the most losses.

  • Bitcoin might rebound based on its price action, along with its 25D-EMA readings, but a drop below $65,700 could worsen the decline.

  • Ethereum's price held steady despite the general market drop and could be on its way to $4,000 if a break below $3,500 doesn't occur

  • Lido needs a confirmed break and close above $2.3, beyond which its bullish strength should be slightly more secure.

  • If the bullish momentum continues, the price targets for Ethereum Classic include anywhere between its $40 local high and  $45.7.

The last 24 hours have been very eventful for the crypto market, considering the approval of the US spot Ethereum ETF applications in the US.

Today, while being a very eventful day for crypto, has done nothing much to dull the ongoing 2.63% decline in its market cap.

The cypto heatmap shows this decline even more clearly, as illustrated by the sea of red below.

<div class="paragraphs"><p>The crypto market’s heatmap</p></div>

The crypto market’s heatmap

What we can see in the heatmap though, is Bitcoin’s declining dominance in comparison to the rest of the market.

As shown, the dominance of the pioneering cryptocurrency is now well below the 53% mark, despite sitting strongly around 55% only a few days ago.

Interestingly, liquidation data from Coinglass shows that traders across the market were betting on further price increases, and were kicked off their trades by the thousands when the market started to decline.

<div class="paragraphs"><p>The crypto liquidation heatmap</p></div>

The crypto liquidation heatmap

In the last 24 hours, the leveraged traders across the market have lost around $372 million, with the bulls losing the most at $272 million, and the bears holding the remaining $100 million loss.

Judging by the above, we can conclude that the bulls have had it rough over the last day, and any short-term dominance they may possess today, will have to be worked on from scratch.

Bitcoin: We Should See a Rebound, Shouldn’t We?

In the chart below, Bitcoin's rejection from the $72,000 zone brought it back down into a retest of the upper trendline of this descending channel.

Moreover, Bitcoin seems to be consolidating around $67,500, where its 25-day EMA also happens to be sitting.

<div class="paragraphs"><p>Bitcoin’s price action</p></div>

Bitcoin’s price action

In sum, the odds of a Bitcoin rebound from here seem pretty sensible, considering the trendline, Bitcoin’s moving average, and the possible rebound between the RSI signal line and MACD.

On the flipside, we can expect the price decline on Bitcoin to be drastic, if, for some reason, we see a decline below $65,700.

Remarkable Resilience from Ethereum

According to the charts, despite the general decline from the rest of the market, Ethereum has held its ground pretty well and is sailing comfortably above the $3,730 - $3,640 mark as shown below:

<div class="paragraphs"><p>Ethereum’s price standing</p></div>

Ethereum’s price standing

So far, considering Ethereum's strength, we can expect the news about the ETF to begin taking effect soon—assuming a break below the $3,640 mark doesn’t happen before then, that is.

An Incoming Breakout on Lido

According to the chart below, Lido seems to be struggling to break above the crucial $2.3 resistance, as indicated in the chart below:

<div class="paragraphs"><p>Lido’s price action</p></div>

Lido’s price action

This price level held the cryptocurrency up through most of the year, and since December 2023, and was only broken below on 12 April, after several attempts by the bears.

Judging by the strength of this resistance, Lido needs a confirmed break and close above $2.3, beyond which its bullish strength should be slightly more secure.

If we see this break and close, we can expect a 70% rally to the $4 resistance.

Further Upside for Ethereum Classic?

According to the charts, Ethereum Classic (ETC) is attempting to finalize a break above the $31.6 price level and seems to be doing a great job at it so far.

<div class="paragraphs"><p>Ethereum Classic’s price action</p></div>

Ethereum Classic’s price action

CoinMarketCap data shows that the cryptocurrency is up by around 4% over the last 24 hours, and the bullishness is set to continue, if the bulls keep the cryptocurrency from falling below the $30 price level.

If the bullish momentum continues, the price targets for Ethereum classic include anywhere between its $40 local high and $45.7 at the least.

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.

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