Ethereum fell below its recent floor of $1,500 earlier in today’s session, as bearish pressure intensified in crypto markets. Uncertainty in the market has heightened today, as traders prepare for yet another rate hike from the Fed. Bitcoin was also lower for a second consecutive day, as prices were on the cusp of falling under the $21,000 level.
Bitcoin (BTC) extended its stint in the red during today’s session, as the token was on the cusp of falling below $21,000.
Following a high of $22,213.48 to start the week, BTC/USD slipped to an intraday low of $21,012.48 in today’s session.
The move saw the world’s largest cryptocurrency fall to its lowest level since last Monday, July 18, when prices were trading at a significant price floor.
This support point is the $20,600 level, which typically has been the last line of defense from bulls, preventing bearish sentiment from taking bitcoin below $20,000.
Looking at the chart, it looks as though we could be set to see BTC once again collide with this floor, as downside pressure seems to be gaining momentum.
The relative strength index (RSI) is also tracking below 50, which usually indicates that bears are currently dictating price movement.
Bears were seemingly dictating momentum in ethereum (ETH), as the token declined below $1,400 in today’s session.
ETH/USD, which was trading at a peak of $1,535.07 on Monday, is now trading at a low of $1,389.29 as of writing.
The decline has intensified as the session has progressed, coming ahead of tomorrow’s Federal Open Market Committee policy meeting.
As a result of this bearish sentiment, relative strength is now tracking at its lowest level in over ten days, with a reading of 51.
Overall, price declines have come shortly after the 14-day RSI moved into overbought territory last week, which bears used as a sign to reenter the market.
The current reading of the index is also a support point, and should this level hold firm, then we may see a rebound in price after tomorrow’s rate decision.
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Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
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