Bitcoin and Ethereum unstable: Crypto market risks
- Bitcoin failed to climb to the upper resistance zone of about $ 31,500 yesterday.
- For ten days now, the price of Ethereum has been moving sideways in the channel in the range of 1900 -2100 dollars.
- Crypto market risks and ECB
Bitcoin chart analysis
Bitcoin failed to climb to the upper resistance zone of about $ 31,500 yesterday. There was another drop from $ 30,650 to $ 28,860. Today, bitcoin is in the range of 29000-29430 dollars, which is a sign of greater bearish pressure and a possible new fall in the price below the support zone of 28,600 dollars. Potential lower support levels are $ 28,000, $ 27,500 levels. We need a new positive consolidation and a break above the $ 29,500 level for the bullish option. After that, we will see if the price will manage to consolidate and continue towards the $ 30,000 level. Potential next bullish targets are $ 31,000, $ 31,500 and $ 32,000 levels.
Ethereum chart analysis
For ten days now, the price of Ethereum has been moving sideways in the channel in the range of 1900 -2100 dollars. The price dropped below $ 2,000 again this morning, and now we are looking in the lower support zone ($ 1,900). If we do not find support below, we will see a break and a decent toward the previous lows. Potential bearish targets are $ 1,850 and $ 1,800 levels. For the bullish option, we need a new positive consolidation and a return price above $ 2,000. After that, we can expect a new attempt to recover the price towards the $ 2,100 level. If the price manages to break above, we will see a continuation on the bullish side. Otherwise, we go back down again. Potential bullish targets above are $ 2,150 and $ 2,200 levels.
Market overview
Crypto market risks and ECB
Cryptocurrencies pose a risk to financial stability if the developing sector maintains rapid growth over the past two years and financial companies deepen their participation, the European Central Bank said.
The cryptocurrency market fell sharply this month after the fall of the large “stabilcoin” terraUSD.
Cryptocurrencies – risk-hungry investors favored the COVID-19 pandemic. Institutional investors were particularly attracted by claims that bitcoin acts as a hedge against inflation and offers high returns despite low-interest rates.
The crypto market peaked at $ 2.9 trillion last November, and now the value of the total crypto market is around $ 1.2 trillion.
In its two-year financial stability review, the ECB said exposure to cryptocurrencies by banks and other financial institutions on a large scale could put capital at risk. Such a move could undermine investor confidence, lending and financial markets.
