The cryptocurrency market continues its bearish start to 2026, with the leading cryptocurrencies recording massive losses over the weekend.
Bitcoin (BTC), Ethereum ($ETH), and Ripple (XRP) trade in red on Monday after dipping by over 11%, 19%, and 13%, respectively, in the previous week.
The leading cryptocurrencies lost 10%, 17%, and 10.5% of their values in January, highlighting persistent downside pressure.
Bitcoin, the leading cryptocurrency by market cap, is extending its correction, as it briefly dipped below $75k on Sunday.
Meanwhile, Ether is trading above $2,240 after losing 10% of its value since Sunday, making it the worst performer among the top 10 cryptocurrencies by market cap.
Ether hits a critical support as market correction continues
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The cryptocurrency market recorded one of its worst weekends in recent months as Bitcoin, Ether, and other major cryptocurrencies shed billions within hours.
Ether has lost 10% of its value in the last 24 hours and briefly dropped below the $2,200 level.
At press time, Ether is trading above $2,240 and could rally higher in the near term if the market recovery persists.
The bearish performance comes as the broader cryptocurrency market suffers from thin liquidity.
Analysts believe that the dump on Sunday was a result of order book dynamics where liquidity has dried, allowing buy/sell trades to have an outsized impact on the going market rate.
The massive dump saw over $750 million worth of leveraged positions wiped out from the market in the last 24 hours.
Long traders lost nearly $584 million, while short traders lost around $171 million.
However, the market could take a breather in the near term as a recent manufacturing survey in China showed factory activity edging into slight expansion.
While China’s tight Yuan policy might not have a direct impact on Bitcoin, analysts are optimistic that this latest data could act more as a background stabilizer than a catalyst for crypto markets.
Ether could slip to the June 22 low of $2,111
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The $ETH/USD 4-hour chart is extremely bearish as Ether continues to trade below the downward-sloping 50-day EMA.
At press time, Ether remains below $2,300, following five consecutive days of losses totaling a 25% decline.
It could retest the critical support zone between $2,111 and $2,227 in the near term if the bearish trend continues.
The RSI of 20 indicates an oversold condition, as selling pressure reaches extreme levels, increasing the likelihood of a reversal from the nearest support level.
Furthermore, the MACD histogram widens below zero as the average lines decline, indicating a bearish bias.
If the daily candle closes below the $2,111 support level, Ether could decline further towards the $2,000 psychological level.
However, if the support level holds, $ETH could rebound towards the $2,500 resistance level, with minor resistance around $2,383 in the near term.
