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▲ Bitcoin (BTC), cryptocurrency decline/AI generated image
As tensions between the United States and Iran escalate again, risk-aversion sentiment has swept the cryptocurrency market, with Bitcoin (BTC), Ethereum (ETH), and XRP simultaneously threatening key support levels.
According to FXStreet, a cryptocurrency media outlet, on May 28 (local time), cryptocurrency prices continued a general sell-off amid escalating tensions between the United States and Iran. Bitcoin fell for three consecutive trading days, dropping to around $73,353, while Ethereum was pressured below $2,200 and XRP below $1.30.
FXStreet reported that armed clashes between the US and Iran weakened investor sentiment. Iran described the US attacks as a violation of a fragile ceasefire and international law, stating that it targeted US bases. Earlier, Iranian state television reported that an informal framework for a memorandum of understanding with the US had been finalized, and that the US would withdraw troops near Iran and lift the naval blockade. However, US President Donald Trump stated that he would not rush into a peace agreement with Iran, signaling that a deal was not imminent.
The deterioration in investor sentiment was also evident in the Fear & Greed Index. Alternative's Crypto Fear & Greed Index dropped from 25 the previous day to 22 today, remaining in the extreme fear zone. FXStreet reported that if investor sentiment remains weak, it will be difficult to sustain price increases, and the possibility of a continuous sell-off could increase.
Bitcoin remained in a short-term bearish trend, trading below its 50-day, 100-day, and 200-day exponential moving averages (EMAs). The 50-day EMA was around $76,535, the 100-day EMA around $76,748, and the 200-day EMA at $81,350 served as overhead resistance. The Relative Strength Index (RSI) remained around 35 on the daily chart, and the Moving Average Convergence Divergence (MACD) histogram showed continued downward pressure below the signal line and the zero line. Below, the trendline break zone near $70,671 was presented as the first key support level.
Ethereum dropped to around $1,990, falling below its 50-day, 100-day, and 200-day EMAs. The 50-day EMA at $2,200, the Supertrend indicator at $2,222, the 100-day EMA at $2,282, and the 200-day EMA at $2,521 successively formed resistance zones. The Relative Strength Index (RSI) remained around 30, close to the oversold zone, but the MACD histogram remained in negative territory, indicating sustained selling pressure.
XRP increased bearish pressure, trading below the $1.31 trendline break zone and all major moving averages. The 50-day EMA was at $1.39, the Supertrend at $1.43, the 100-day EMA at $1.46, and the 200-day EMA at $1.67 was presented as a larger structural resistance. FXStreet reported that if the sell-off continues, XRP could find support at $1.25, and further declines could lead to a confirmation of a broader bearish trend.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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