Ethereum

Crypto Economy Drops Below $1 Trillion as Bitcoin and Ethereum Fall Below Previous Support Zones

Crypto Economy Slides Under $1 Trillion, as Bitcoin and Ethereum Dive Below Previous Support Zones

On Saturday, August 27, 2022, the global market capitalization of all the crypto assets in existence dropped under the $1 trillion mark and the leading crypto asset bitcoin slipped below the $20K region for the first time since mid-July.

Crypto Economy Craters — More Than $240 Billion Erased in 13 Days

Digital currency markets this weekend are feeling the pain as the global cryptocurrency market capitalization today is just under $1 trillion, down 4% during the last 24 hours. That was after the crypto economy shed more than 6% the 24 hours prior. The major drop in the crypto market occurred almost immediately after Fed chair Jerome Powell gave his speech on Friday at the annual Jackson Hole Economic Symposium.

Crypto Economy Slides Under $1 Trillion, as Bitcoin and Ethereum Dive Below Previous Support Zones — Coinmarketcap.com data shows that 20,756 crypto assets in existence are now worth less than $1 trillion in U.S. dollar value.

At the time of writing, bitcoin (BTC) is down 3.5% today and 4.5% over the last seven days and the leading crypto asset is trading for $19,968 per unit. BTC fell to a daily low today tapping $19,766 per unit at 11: 39 a.m. (EST). Ethereum (ETH), the second largest crypto asset by market valuation slid 5.1% on Saturday and lost 8.8% this week.

There is $67. 44 billion in 24-hour global trade volume across the twenty thousand crypto assets in existence, but tether (USDT) commands $34. 07 billion of the aggregate. The USDC (Center’s usd coin) has been worth $7. 75 billion out of the $67. 44 billion total as well. The volume between USDT and USDC represents 62. 01% of today’s global trade volume.

While ETH lost 5.1% on Saturday, solana (SOL) lost 5% as well and dogecoin (DOGE) shed 3%. The biggest losers today include lido dao (LDO) down 11%, radix (RDX) lost 6.8%, and ethereum classic (ETC) shed 6.9%. The tokens internet computer, chiliz (CHZ), DFI (DFI), and polygon (MATIC) all managed to gain between 2.3% and 5.2%.

The crypto economy is a whole lot lower in USD value than it was on August 14, when the market capitalization of all the coins in existence was $1. 24 trillion. That day, bitcoin (BTC) jumped over the $25K zone, and ethereum (ETH) managed to rise above $2K per unit. Billions have been erased since that day, in a matter of just under two weeks, more than $240 billion is gone.

PSA: MtGox is *NOTdistributing any coins this week, or the next week, or the week after that.

Source: I’m a MtGox creditor. The repayment system is still not available.

Next step: Go and block @TheAltcoinHub for spreading this misinfo.

— Eric Wall (also supports X ) (@ercwl) August 27, 2022

While yesterday’s downturn was blamed on the Fed, today’s drop is surrounded by speculation and rumors on social media that the Mt Gox bitcoin stash of 140,000 BTC is soon to be released. Some believe Mt Gox will release the BTC really soon, while others are calling the rumors “fake news.” Despite any veracity to the Mt Gox coin chatter, there are hundreds of tweets discussing the subject on Twitter.

This story contains tags

Bitcoin, Bitcoin markets, BTC, Crypto, crypto economy, Crypto markets, Cryptocurrencies, Dogecoin (DOGE), ETH, Ethereum, Fed, jerome powell, Market Capitalization, Market Valuation, Markets, Solana (SOL), Under $1 trillion, Under $20K

What do you think about the cryptocurrency carnage that has seen the global market capitalization of all the crypto coins in existence drop under $1T? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

Ethereum

Ethereum Traders Just Flipped Bullish, But History Says This Is a Major Red Flag

Ethereum’s bounce toward $3,500 triggered instant FOMO, but Santiment says extreme optimism usually means price is about to disappoint.

Ethereum traders have swung sharply from extreme bearishness to extreme bullishness within just a few days, based on social media sentiment.

But fresh data suggest that when ETH nearly rebounded to $3,500 on Thursday, the crowd interpreted the move as a confirmation that the asset was “back in business.”

ETH Trader FOMO

Santiment warned that this sudden pivot is similar to the same pattern seen earlier in the week, when retail panic selling actually contributed to the rebound. Now, the rapid return of FOMO could similarly stall further upside.

According to the analytics platform, prices have shown a tendency to move in the opposite direction of the crowd, and that more neutral sentiment phases have proven to be stronger buy signal environments than euphoric ones.

Crypto trader Ted Pillows also noted that even though the altcoin is showing some rebound after this week’s sharp decline, the recovery lacks conviction. According to Pillows, the current move higher, though modest, is being driven largely by short positions being closed rather than new spot buyers stepping in. He added that Ethereum needs to reclaim the $3,600-$3,700 price range with meaningful inflows to establish strength and dismiss the risk of further downside. Without that confirmation, Pillows believes the odds still favor lower prices from here.

Despite the near-term uncertainty, some traders say the bigger picture is still pointing toward a substantial upside scenario. For instance, crypto trader “Trader Tradigrade” said that ETH’s monthly chart is currently developing what he describes as a massive Inverse Head and Shoulders pattern, with a potential price target of $14,000 once confirmed.

“Wet Blanket” Phase

As the crypto market remains sluggish, Galaxy CEO Mike Novogratz believes that this could be due to long-term holders rebalancing their net worths and diversifying away from massive concentrated holdings after a very long bull market. Novogratz deems this to be a healthy sign in the medium and long term as these positions get distributed. In the short run, however, he said that “it’s a proverbial wet blanket” and has weighed on prices.

About the author

Chayanika has been working as a financial journalist for six years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm.

Ethereum

Ethereum Price Analysis: Will $3K Hold as ETH’s Bearish Momentum Intensifies?

Ethereum has slipped below the $3,300 mark, indicating persistent selling pressure in this zone. While bears aren’t showing strong momentum just yet, the fact that the price declined following a major liquidation event, one that already cleared out many over-leveraged longs, raises the risk of further downside. This hints that spot sellers could now be in control, opening the door for a deeper short-term correction.

Technical Analysis

By Shayan

The Daily Chart

On the daily chart, ETH dropped below the channel and has fallen slightly beneath the 200-day moving average. It is currently breaking below the $3,300 demand zone too. This is a key level Ethereum is now losing, as the 200-day moving average is known as one of the most critical indicators for determining whether the overall market phase is bullish or bearish.

The RSI also remains weak at 32, showing the market is not bound for recovery yet. For buyers to regain control, ETH needs to break back above $3,500 and flip that region and the 200-day moving average into support. Until then, the price is sitting in a vulnerable zone, which could push the price lower toward the $3,000 support level in the coming days.

The 4-Hour Chart

The 4-hour chart shows a quick rejection from the lower boundary of the broken channel and the previous support zone, around $3,400. The price is currently hovering around the level and has yet to form a convincing rebound or create a higher low.

The RSI is also stabilizing below the 50% level, as the momentum is clearly bearish. With ETH breaking the $3,300 to the downside once more, the next sweep toward the $3,000 zone and lower could come fast.

Sentiment Analysis

Long Liquidations

Sentiment-wise, liquidations wiped out a large portion of late long entries, creating a cleaner slate for the price to stabilize. The chart shows a major liquidation spike right before the small bounce, confirming the shakeout.

With many positions flushed and the RSI nearing oversold regions across multiple timeframes, the market might soon be due for a reset. Yet, traders are likely to stay cautious, waiting for clearer strength and a break back above $3,500 before reloading on longs.

On the other hand, a drop toward the $3,000 level could ignite another liquidation cascade and lead to an even more significant liquidation event, which could result in another flash crash in the upcoming weeks.

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Cryptocurrency charts by TradingView.

Ethereum

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