Ethereum News Today: Bitcoin Slides Below $90K as Risk-Off Sentiment Drives Crypto Sell-Off

Bitcoin and Ethereum prices continued their downward trend on Tuesday, with risk-off sentiment dominating the crypto markets. The largest cryptocurrency by market capitalization, Bitcoin, retreated below $90,000 after rejecting key resistance levels, while Ethereum and XRP followed suit, trading under critical moving average thresholds according to market analysis. The broader sell-off has raised concerns among investors about the sustainability of recent bullish trends.

Market analysts noted that ETF outflows and a lack of institutional buying pressure have contributed to the current correction. A close below $87,000 for Bitcoin could drive it toward support levels at $84,450 and $83,822. On the flip side, some traders remain hopeful for a rebound if the MACD indicator signals a bullish crossover and green histogram bars expand above the mean line according to technical analysis.

Ethereum faces similar headwinds, with prices trading below the key $3,000 level and technical indicators pointing to an extended bearish outlook.

The RSI has dropped to 45 on the daily chart, signaling increasing bearish momentum, and a further decline toward oversold territory could accelerate the downtrend toward $2,623.

What This Means for Investors

The recent weakness in major cryptocurrencies has led to heightened volatility and uncertainty among traders. For Bitcoin, the rejection at $90,000 and the bearish sentiment around Ethereum have created a cautious environment, especially as investors monitor whether the market will stabilize or face further declines. The Moving Average Convergence Divergence (MACD) on Bitcoin has shown mixed signals, with a bullish crossover on Saturday contrasting against the current downward momentum according to technical indicators.

For Ethereum, the technical indicators are leaning toward a continuation of the bearish trend. The 50-day, 100-day, and 200-day EMAs are all sloping downward, reinforcing the prevailing negative outlook. A key area for traders to watch is the 50-day EMA at $3,185. If Ethereum fails to break this level, it may remain trapped under heavy overhead pressure according to market analysis.

Risks to the Outlook

The broader market is also grappling with external risks that could amplify the current downturn. Address poisoning attacks, such as the recent $50 million USDT loss, have further heightened concerns about the security of crypto transactions. Additionally, Ethereum's price volatility is expected to intensify due to large options expiries, potentially triggering short-term sell-offs before the market stabilizes.

Investors must also weigh the implications of new regulatory developments in the U.S. A bipartisan tax bill has been proposed, which includes provisions targeting crypto derivative strategies and offering stablecoin and staking relief. These measures could reshape how investors and institutions approach crypto taxation and hedging strategies, particularly for those involved in Ethereum and stablecoin-related activities.

What Analysts Are Watching

Analysts are closely monitoring Bitcoin's behavior around key support and resistance levels to determine the next potential direction. A close above $2.00 for XRP would be a positive signal, reinforcing a bullish case for a breakout beyond the 200-day EMA at $2.40 according to market analysis. However, with the RSI currently at 39 and sloping toward oversold territory, XRP may face further downward pressure unless a strong buying interest emerges.

For Ethereum, the focus is on whether the MACD indicator can sustain a bullish signal and if green histogram bars expand above the mean line. Such a scenario would indicate a potential shift in sentiment, allowing buyers to take control and push prices upward. Conversely, continued bearish momentum could prolong the downtrend and force Ethereum toward critical support levels.