Ethereum fell below $1,900 today as crypto markets continued to react to disappointing economic data from China. Figures in July showed that both retail sales and industrial production in China had grown less than expected, raising concerns of an impending global recession. Bitcoin also declined on Tuesday.
Bitcoin (BTC) was back in the red as crypto markets continued to slide, following disappointing economic data from China on Monday.
Figures from the world’s second-largest economy showed retail sales had grown 2.7% last month, less than the 5% expected.
This, along with declining industrial production data, pushed BTC lower yesterday, and the sell-off extended into today’s session.
At the time of writing, BTC/USD fell to an intraday low of $23,839.77 as prices fell for the fourth session in a row.
Looking at the chart, the 14-day Relative Strength Index (RSI) stands at 57.25, which is marginally higher than Monday’s low, and could be positive for bulls awaiting a reversal.
BTC has since broken away from the previous lows and is currently trading at $24,030.08.
Like bitcoin, ethereum (ETH) also saw volatility during today’s session, with the token falling marginally below $1,900.
On Tuesday, ETH/USD fell to a low of $1,862.74, which comes less than 24 hours after the token hit a high of $1,926.60.
Today’s bottom is the lowest level at which ethereum has traded since August 11, when the price broke through the ceiling of $1,885.
Ultimately, the drop comes in as a key resistance point at $2,010 that held firm over the weekend, with bears using this as a signal to re-enter the market.
Despite this, ETH is up nearly 11% from the same point last week, with the 10-day moving average (red) maintaining its uptrend.
Although uncertainty in the global economy has affected investor confidence, there is still a good chance that Ethereum could break above $2,000 in the coming days.
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Will the bullish momentum return to crypto this week? Leave your thoughts in the comments below.
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