Ethereum moved below $1,600 on Jan. 25, with bears selling previously overbought cryptocurrencies. After days of uncertainty, sentiment shifted in crypto markets, with a red wave washing away recent bulls. Bitcoin also dropped below $23,000 as a result of today’s sell-off.

Bitcoin

Bitcoin (BTC) fell below the $23,000 level on Wednesday, as a red wave swept through cryptocurrency markets.

Following a high of $23,048.18 on Tuesday, BTC/USD hit an intraday low of $22,406.08 earlier in today’s session.

As a result of today’s drop in price, bitcoin fell to its weakest point since Sunday, breaking out of a floor at $22,500 in the process.

Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,600 as Relative Strength Sinks
BTC/USD – Daily Chart

Looking at the chart, the drop came as the 14-day relative strength index (RSI) fell to its lowest level since last Thursday.

At the time of writing, the index is tracking at a level of 79.93, which comes less than 24 hours after hovering at 85.09.

Since its earlier breakout, the world’s largest cryptocurrency has somewhat rebounded, and is currently trading at $22,614.62.

Ethereum

Sentiment in ethereum (ETH) also shifted on Wednesday, with prices falling below a recent support point at $1,600.

ETH/USD slipped to a bottom of $1,530.80 on Wednesday, following a peak of $1,630.47 during Tuesday’s session.

Since breaking out of its $1,600 floor, ethereum appears to be heading towards a lower level of support at $1,500.

Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,600 as Relative Strength Sinks
ETH/USD – Daily Chart

Like with bitcoin, today’s red wave comes as bears have finally opted to reenter the market, as a result of prices being overbought.

Ethereum’s 14-day RSI is currently sitting at 61.07, which is its lowest point since January 8, and this comes a day after breaking out of a floor at 74.00.

There appears to be an upcoming support area at 58.00, and if this remains firm, ETH could manage to stay above $1,500.

Register your email here to get weekly price analysis updates sent to your inbox:

Tags in this story

Could we see cryptocurrencies continue to fall in the coming days? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Maximumhorrors.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer