The ongoing conflict between Hamas and Israel, coupled with a significant ether (ETH) sale by the Ethereum Foundation, has had a notable impact on the broader crypto markets. As a result, bulls saw over $100 million in futures positions vanish and the market slide 2% on average.
Bitcoin (BTC), however, has shown signs of stability compared to other tokens. In the past 24 hours, BTC lost only 1% and remained above a crucial support level of $27,500 during Asian morning hours on Tuesday. Investors are closely monitoring riskier assets such as technology stocks and bitcoin amid surging oil prices.
Analysts at trading firm FxPro have noted that they are closely observing the $28,000 level for bitcoin, viewing a break of this level as a bullish signal. They mentioned that technically, bitcoin remains in an uptrend, but encountered resistance at its 200-day moving average over the weekend. The analysts believe that if BTC/USD can successfully consolidate above $28,000, the 200-day moving average, a quick rise to as much as $29,500 can be expected.
On another note, ether experienced a 3% slump due to the Ethereum Foundation selling $2.7 million worth of tokens on Monday. This move raised concerns among traders and adversely affected the ETH futures markets, causing ether bulls to lose more than $30 million – the highest among all crypto traders – on that day.
Other tokens also experienced declines, with Solana’s SOL tokens sliding nearly 5%, XRP dropping 3.7%, and Cardano’s ADA falling 3.4%. The CoinDesk Market Index (CMI), which provides a broad-based indication of crypto markets by tracking hundreds of tokens, fell 1.9%, indicating overall losses for traders.
Overall, the ongoing conflict between Hamas and Israel, coupled with the significant ether sale by the Ethereum Foundation, has had an impact on the crypto markets. While bitcoin has shown relative stability, other tokens have experienced losses. Traders will be closely watching the market to see how it evolves in the coming days and whether bitcoin can consolidate above the $28,000 level.