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Since its price is clearly out of line with the general market trends, Ethereum is facing increasingly serious difficulties.
But according to recent events, Ethereum's strength seems to be rapidly declining, and investor frustration is becoming increasingly apparent. The intense selling pressure that ETH is experiencing is one of the most worrying signs. It seems that most market participants are selling their Ethereum and not increase them.
With no signs of a reversal, this trend has contributed to a steady decline in the price of Ethereum. Any significant recovery is becoming increasingly difficult as once-reliable levels of trader support have turned into resistance. Investor confidence has been further shaken by a rapid transfer of funds from the wallet of Ethereum co-founder Vitalik Buterin.
People’s confidence in Ethereum has been significantly reduced as a result of all these factors. Selling pressure is only increasing as large investors retreat and small traders do the same, triggering a vicious cycle that causes the price to fall. The future of Ethereum looks increasingly bleak as its strength seems to have disappeared, with no clear signs of recovery in the foreseeable future.
Solana is crushed
Solana's price has fallen below the critical $130 mark, signaling a catastrophic crash. SOL's price has fallen nearly 30% in the last two weeks, a sudden and dramatic drop that has alarmed investors and raised serious concerns about the cryptocurrency's near-term future.
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The fact that Solana has been declining for 13 days straight is the most worrying part of this downturn. The market is in turmoil due to this constant depreciation, and there is no sign that a recovery is imminent. Technical indicators that are often used to assess the health of an asset’s price action paint a grim picture.
SALT is currently trading well below its major moving averages, including the 50-day, 100-day, and 200-day lines. Since it was considered an important support level that, if broken, could cause additional downward pressure, the break below $130 is especially notable. The psychological implications of this break cannot be overstated, as it implies that sellers are largely in control, with buyers either unable or unwilling to step in and stop the downtrend.
DXY remains depressed
Many investors have been caught off guard by the recent strong rise in the dollar index (DXY), which has put the cryptocurrency market at risk. In the past, a stronger US dollar has caused cryptocurrencies to quickly lose value, attracting investors to alternative asset classes.
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This thesis seems to be supported by the recent performance of major digital assets such as Ethereum and Solana, with both seeing significant price drops in tandem with the strengthening dollar. Growing selling pressure is being applied to cryptocurrencies as the DXY rises. For example, Solana has seen a sharp decline, losing almost 30% of its value, while Ethereum is struggling to hold on to critical support levels.
This inverse relationship between the U.S. dollar and cryptocurrencies highlights the challenges that digital assets face as the dollar becomes stronger. For crypto investors, the biggest concerns are how much higher the dollar can go and how much more value digital assets can lose.