Why is Ethereum (ETH) price down today?

Key with you:

• The price of Ether dropped 19 May by 5% to $ 2,380, similar to the downhill of similar movements through the wider cryptocurrency market.

• Long liquidation was accompanied by a fall in the price of ETH.

• Under $ 2,400 could be the opportunity to buy a buy-the-Dip.

Ether (Eth) The price dropped by more than 4.5% in the last 24 hours to approximately $ 2,380.

Data from COINTELEGRAPH Markets for and Tradingview It shows that ETH has lost up to 10% of its value, dropped to a domestic minimum of $ 2,353. May of May 2,587 $ 18. Its daily trading volume jumped by 110% in the last 24 hours to $ 30.4 billion, which strengthened the intensity of sales activity.

Let’s take a look at the factors today behind Ether’s losses.

Ethereum leads a market crypto sale

Drop ETH reflected similar towing movements elsewhere on the cryptocurrency market, with the total capitalization dropped by approximately 1.40% to $ 3.25 trillion.

Bitcoin (BTC) He saw modest losses and dropped by 1%in the last 24 hours to trade over $ 102,900. Other main altcoins such as XRP (XRP) and Solana (Sol), also recorded significant losses of 2.3%and 4.5%respectively.

This performance comes when the market spent the consequences Moody’s evaluation of credit scores of the United States.

17th May rating giant reduced the American sovereign loan on AA1 Z AAA and quoted the balloons of the country National debt of $ 36 trillionPersistent fiscal deficit, increasing interest expenditure and lack of political will to suffer expenses.

This downgrade, the first of Moody’s since 1919, rattled the financial markets and pushed Treasury gives a higher and the launch of the “risk” sentiment.

“Decree on Friday is rising again after Moody Downgrade,” said Commentator Capital Markets, letter Kobeissi, in the post of May 19 to X and added:

“Commercial agreements, concerns about recession, lower inflation and slowing GDP cannot get lower returns.”

Higher revenues increase the costs of loans, harm businesses and consumers, especially in recessive fears and fiscal fears.

Meanwhile, the American Federal Reserve remains stubbornly regarding the non -cutting ratewith the prices of market participants in only two possible reduction in rates in 2025, according to CME Group Fedwatch.

Downgrade signals higher economic uncertainty, forcing investors to withdraw from speculative assets, including crypto.

Long liquidation accelerates downward ETH

Ether in the last 24 hours has coincided with a wave of long liquidation, which forced traders to leave their lever positions.

The ETH position worth over $ 255 million has been deleted in the last 24 hours, with long liquidation 78% of the total or $ 200 million.

A sharp drop in prices launched a cascade of forced sales, when traders were betting to increase the price of Ethereum, they were liquidated.

When lever long positions cannot maintain margin requirements, exchange automatically sells their shares in covering losses. Such liquidations accelerate the price of the decline and worsen the decline.

Wider crypto market as well experienced a sharp event of reducingWith total liquidation of $ 665 million across assets. More than $ 430 million have been disposed of in the last 12 hours.

The ETH price loses the level of key support

May 18, May, Ether’s price It fell below the critical level of support provided by a 50 -day simple gliding average (SMA), currently $ 2,530 and $ 2,400. The analysis had previously had resistant The fact that ETH bulls were obliged to keep over $ 2,400 to secure up.

ETH Bulls are now focusing on another area of ​​interest between $ 2,330 and a range of $ 2,274 low low achieved May 9. The loss of this support would mean that a few ETH/USD could try to be $ 2,250, which is also a 100 -day SMA.

The RSI 19 May dropped to 38 of the overcame conditions to 86 May, indicating that the bearish dynamics increases, as the profit intensifies.

Popular crypto analyst Michael van de Poppe said The price of Ether under $ 2,400 was “theft” that provided the opportunity to dive before ETH restored its rally towards the historical maximums.

This article does not contain investment counseling or recommendations. Every investment and business step includes a risk and readers should do their own research in decision -making.