Ethereum, All Gains Evaporate...Enters Compressed Spring Market Phase

▲ Ethereum (ETH)/ChatGPT Generated Image

Ethereum (ETH) has given back all its gains since the end of last month and is retesting the $2,240 support level. FXStreet reported on the 13th that Ethereum is confirming support around $2,240, where its 50-day moving average is located, and has been forming lower local highs over the past four weeks.

The total market capitalization of the cryptocurrency market has moved around $2.7 trillion over the past seven days. While it showed relatively stable levels in early European trading, the price repeatedly deviated by nearly 2% from that level during intraday trading before quickly returning to equilibrium.

Over the last 24 hours, the top gainers included NEAR Protocol (NEAR) at 5%, TRUMP at 3.8%, and Neo (NEO) at 3.5%. Conversely, Toncoin (TON) fell by 8%, THETA by 5.2%, and Basic Attention Token (BAT) by 2.2%, showing sluggish performance.

Bitcoin (BTC) continues to quietly settle above $80,000 but has not yet decided on a breakthrough past its 200-day moving average. FXStreet analyzed that traders are showing excessive emotional interest in this technical benchmark. It explained that about a year ago, Bitcoin moved relatively freely across the same curve in both directions.

Ethereum has lost all the gains it accumulated since the end of last month and is retesting the $2,240 level, where its 50-day moving average is located. While lower local highs have continued over the past four weeks, a trend of lower local lows has not yet formed. FXStreet evaluated the current structure as similar to a compressed spring.

CryptoQuant analyzed that the decrease in volatility of major cryptocurrencies and the inflow of institutional capital have changed market cycles, making this cycle different from past ones. Accordingly, current price movements are showing different patterns compared to historical data.

Mining company MARA reported a net loss of $1.3 billion and the sale of over 20,000 BTC in the first quarter. The main reason for the negative performance was the decrease in the value of its holdings as Bitcoin fell by over 20% during the quarter. Another major mining company, CleanSpark, also reported a $378 million loss in Q1.

Democratic members of the U.S. Congress are demanding that public officials be prohibited from profiting from cryptocurrency assets. If no compromise is reached on ethical issues, the U.S. cryptocurrency market structure bill will have difficulty getting approval. Lawmakers plan to finalize work on the bill by August.

Ray Dalio, founder of Bridgewater Associates, stated that Bitcoin cannot be considered a safe-haven asset. Dalio cited the fact that all Bitcoin transactions are visible on a public blockchain as one of the main reasons, stating that the title of safe-haven asset is only fitting for gold.

Elliptic raised $120 million to develop cryptocurrency tracking tools. Elliptic plans to use the raised funds to create and launch AI agents that perform the tasks of compliance officers.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*