The ongoing Hamas-Israel conflict and a significant ether (ETH) sale by the Ethereum Foundation weighed in on broader crypto markets as bulls saw over $100 million in futures positions evaporated and the market slid 2% on average.
Bitcoin (BTC) showed signs of stability relative to other tokens, losing 1% in the past 24 hours and hovering above a key support level of $27,500 in Asian morning hours Tuesday. Among traders, riskier assets such as technology stocks and bitcoin are in focus amid surging oil prices.
Analysts at trading firm FxPro told CoinDesk in a note that they were watching for a break of the $28,000 level for bitcoin before turning bullish.
“Technically, bitcoin remains in an uptrend but ran into resistance at its 200-day moving average over the weekend,” the analysts said. “All eyes will be on BTCUSD to see if it can successfully consolidate above $28,000, the 200-day moving average. If it does, we can expect a quick rise to as much as $29,500.”
Elsewhere, ether slumped 3% as the Ethereum Foundation sold $2.7 million worth of the tokens on Monday, sparking concerns among traders. This weighed in on ETH futures markets – with ether bulls losing over $30 million, the highest among all crypto traders, on Monday.
Elsewhere, Solana’s SOL tokens slid nearly 5%, XRP dropped 3.7% and Cardano’s ADA fell 3.4%. The CoinDesk Market Index (CMI), a broad-based indication of crypto markets that tracks hundreds of tokens, fell 1.9% – pointing to overall losses for traders.