Bitcoin smashed lower, huge liquidations reported

💡 DMK Insight

Ethereum’s recent 4.5% drop to $1,914.09 signals potential bearish momentum across the crypto market. With Bitcoin also under pressure, traders should be wary of a broader sell-off that could push ETH back to recent lows. The daily chart suggests a lack of buying support, which could trigger further declines if key support levels fail. Watch for $1,850 as a critical threshold; a break below this could accelerate selling pressure. On the flip side, if ETH manages to hold above this level, it might attract bargain hunters looking for a reversal. Keep an eye on Bitcoin’s performance as well, since its movements often dictate the altcoin market’s direction. If Bitcoin continues to falter, expect ETH to follow suit, potentially dragging down related assets like DeFi tokens and NFTs. Traders should monitor trading volume closely; a spike in volume during a downturn could indicate panic selling, while low volume might suggest a lack of conviction in the downtrend.