The cryptocurrency market, led by Ethereum (ETH) and Bitcoin (BTC), shed greater than $500 billion in internet valuation since Friday to hover about $3.16 trillion on Monday, February 3, through the early Asian session. Following the heavy deleveraging within the crypto market, greater than $2.1 billion was liquidated up to now 24 hours, larger than the FTX and COVID-19-induced crypto crashes.
Bitcoin value has dropped greater than 10 % up to now two weeks to retest a vital assist degree above $91k. Ethereum value shed greater than 30 % up to now two weeks to retest the multi-month assist degree of round $2,136.
High Causes Why Crypto Market Crashed At the moment
The cryptocurrency market has been reacting to the onset of Donald Trump’s second time period up to now few weeks. After receiving important hype within the months resulting in Trump’s second inauguration in mid-January, the crypto market has skilled a sell-the-event situation up to now two weeks.
Notably, US President Donald Trump launched commerce wars with Canada, Mexico, and China, thus triggering retaliation from the affected nations. Because of this, the crypto market adopted main inventory indexes led by the Dow Futures.
Ethereum Whales Capitulate
The notable capitulation in Ethereum value was closely fueled by whales’ panic promoting. As Ethereum’s provide on centralized exchanges surged to a brand new 12-month peak of practically 16.2 million, on-chain knowledge exhibits a number of whales deposited their Ether to completely different CEXes on the market up to now 24 hours.
What Subsequent for Ether?
If that is an ascending parallel channel, #Ethereum $ETH should maintain the $2,750 assist degree to set the stage for a rebound to $6,760! pic.twitter.com/XPeM1tQhZQ
— Ali (@ali_charts) February 3, 2025
From a technical evaluation standpoint, Ethereum value has retested a vital assist zone, which should maintain within the coming weeks to re-ignite the subsequent part of the macro bull run. In response to crypto analyst Ali Martinez, if Ether’s value holds the assist degree above $2,750, the stage will likely be set for the subsequent rally past $6k.
In response to crypto analyst Benjamin Cowen, Ethereum value, in opposition to Bitcoin and doubtlessly the US greenback, will backside out after the Fed’s Quantitative Tightening (QT) ends.
