Key Insights:
Today, we saw a major decline in the altcoins market, with Ethereum, Solana, and Cardano leading the loss making cryptos.
The Altcoin Index too has fallen to extreme low levels.
The reason for this falls seems to be Fear, Uncertainty and Doubt.
However, these losses seem temporary because of an expected liquidity injection in April and May 2025.
We have seen a major price decline in altcoins in the last couple of hours with Etherium and Solana leading the pack. The reason for the decline seems to be fear uncertainty and doubt around the continuation of the bull market paired with a short selling cabal that might be taking benefit of the low liquidity situation in the market.
Ethereum Sees Major Fall Below $1800
CoinMarketCap
As a result of the fall, the Altcoin Index has fallen to 14/100 and the Bitcoin dominance rose to 62%.
We expect this fall to be short-lived because of the upcoming Open Market Operations by the US federal Reserve and the possibility of a 0.25% rate cut in its 6-7 May FOMC Meeting.
Further, markets have been witnessing decent accumulation major cryptocurrencies.
Ethereum Sees Price Breakdown Below $1800
CoinMarketCap
In the last 24 hours, Ethereum has crashed to $1780, much below its long term support of $1800.
The price falls in Ethereum could be attributed to its upcoming Pectra Upgrade and the recent FUD around the recession, which has made its price volatile.
Another reason for the steep decline in Ethereum is the performance of its ETF, which has seen severe selling pressure.
The final major reason seems to be the rate of emissions (new tokens in supply) in Ethereum tokens which has accelerated due to the fall in ETH's price. Please note that a fall in Ethereum's price
However, all of its long-term fundamentals like revenue, DeFi TVL, Stablecoins, etc., are at their best levels among all chains.
Crypto chart analyst Ali Martinez has brought this to the market's attention that XRP has broken down its head and shoulder pattern, meaning that its price could see $1.5 or even $1.2 by the end of next week.
The fall in XRP is concerning because, just a few days ago SEC has closed its XRP case. Ripple Labs was liable to pay just $50 million out of the court-mandated at $125 million.
The cause of the correction at this point seems to be short-term selling rather than any change in its long-term fundamentals.
Solana Breaks Down Below $114
CoinMarketCap
Solana has broken down around 0.11% over the last hour and 1% in last 24 hours with most of its bearishness coming from the short selling in the markets. If this selling continues Solana might crash below its $114 support zone, after which the price could slide down to $100.
However, in the long term Solana's price trend remains intact with the SEC possibly approving its ETF around the end of this month.
Experts have been predicting an altcoin season in late 2025 with many believing that Bitcoin is now at a peak dominance in the markets (at 62%).
Cardano has seen a major 1.29% fall over the last 24 hours. At press time, its price was trading around $0.63, still in a declining trend. The crypto has fallen 10% over the last one week.
Cardano Breaks Down 10% This Week and 1.3% In Last 24 Hours
CoinMarketCap
Cardano could face trouble reviving its price in the long term because the project already sees abandonment issues from its retail users.
The current markets are possibly selling in the fear of a crash or recession and we expect a revival within a few days.
Voice of Crypto's hope for a crypto market revival is high because the US Federal Reserve is soon expected to conduct Open Market Operations, as said in its last meeting press brief. Further in May 2025 the US Fed might cut a 0.25% interest rate, leading to a possible market recovery in the next couple of months.
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.