Cryptocurrency prices plunged in today’s session, as markets reacted to the latest U.S. inflation report. Bitcoin prices dropped more than $2,000 within the last 24-hours, with consumer prices falling less than anticipated in the United States. Ethereum also fell below $1,600, which was a red flag.
Bitcoin
Bitcoin (BTC) was trading lower in today’s session, as markets continued to react to the latest U.S. inflation report.
The BTC/USD intraday drop to $20,062.67 after Tuesday’s peak of $22,673.82
Markets had expected August’s consumer price index (CPI) to come in at 8.1%, down from 8.5% the month prior.
However, with the CPI coming in at 8.3%, traders’ confidence faded, leading to a bloodbath across the crypto market.
The chart shows that this selloff occurred after a false breakout at $22,600 resistance. Prices are now hovering near a crucial support point.
BTC/USD traded at $20.164.21 (a little below its floor of $20.600) as of the writing of this article.
We could see traders targeting a $19,000.300 support level if bearish sentiment continues throughout the day.
Ethereum
Ethereum (ETH), which fell to $1,600 on the day of The Merge, was also hit by the bearish storm.
Less than 24 hours after hitting a high of $1,637.05, the world’s second largest cryptocurrency dropped to a bottom of $1,564.03 on Wednesday.
This week’s drop in USD/ETH saw the token reach its lowest level in the past week. It is now close to $1,550 as a long-term floor.
The bulls have so far not broken below this level, and many are choosing to reenter the market and purchase the current dip.
Ethereum currently trades at $1,594.08, and the bulls will likely try to get prices above $1,600.
Many still expect that ETH will rally in upcoming days, remaining optimistic about tomorrow’s Merge, and the long-term implications it could have.
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What do you think will happen to sentiment in ethereum in the next few days? Please leave your comments.
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