What caused Ethereum, Bitcoin Cash to Plunge 15% in 4 hours?

In the last 4 hours, $ 9 billion has been wiped out by the encrypted market while Ethereum and Bitcoin Cash have dropped by 14% respectively against the US dollar.

The price of Bitcoin dropped to $ 3,750, returning to last week's levels after a promising corrective rally on January 6 when the BTC rose from $ 3,753 to $ 4,090.

The money of Ethereum and Bitcoin remain as worst performers during the day

In the last two weeks, the price of Ethereum has almost doubled, from $ 85 to $ 160 in anticipation of Constantinople's fixed fork scheduled to run between January 14 and 18.

The volume of Ethereum is increased when the second most important cryptocurrency in the global market has been trading with the most important exchange of digital resources.

However, large short-term gains leave businesses vulnerable to large short-term adjustments and in the last few hours the ETH price has fallen by 14.9% from $ 154 to $ 131 in one of the largest daily collapse last 12 months.

As the sales pressure on the cryptocurrencies market intensified and triggered a sell-off of digital assets, cryptocurrencies that showed decent earnings between December and January on stocks like Ethereum, Bitcoin Cash and Litecoin reported the biggest losses on the day.

Since January 7, traders including The Crypto Dog have suggested that ETH's technical indicators suggest a short-term downward movement.

The dealer He said on Monday:

Maybe I'm just seeing what I want to see, but this chart is screaming at me 'the last chance to do a short ETH. & # 39; It makes sense to see a rebound here, given this level on the relationship, so I hesitated to say that this is a great voice. … and of course, I'm just thinking out loud, not trying to invite someone to FOMO in a trade. I contracted ETH for $ 156 and sat relatively comfortable here.

Although both major cryptographic assets and small capitalized tokens have shown signs of short-term recovery over the past two months, several analysts have suggested that without a breakout above key resistance levels, it is difficult to declare an adequate fund in the cryptocurrency market. .

In late December, Mark Dow, a trader who reduced Bitcoin (BTC) from his all-time high to $ 19,500 up to $ 3,500, said that if Bitcoin fails to recover over $ 6,000 in the short term, the market is in trouble .

"Still a nice table, if bitcoin can not bounce back to $ 5k – $ 6k early, it's really a bad sign for cyberbulls, and if it breaks through the yellow line anywhere, even the HODLERs have to GTFO," he said Dow at the moment.

The trend has not changed

Basically, Dow suggested that the trend in the cryptocurrency market has not changed and the encrypted winter is still in full effect.

If cryptocurrencies continue to show a high level of volatility in a low price range, at least in the near future, a strong turnaround is highly unlikely.

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