Cryptocurrencies stable after a selloff

Cryptocurrency prices were stable on Wednesday, after sustaining heavy losses on Tuesday. Risk sentiment remains unstable, affecting stock markets and crypto markets alike. 

Steep rate hikes increase global recession concerns, putting pressure on risk assets. Markets are currently wavering between a 50-bp and a 75-bp Fed rate hike in September, with odds favoring a 75-bp rate hike. The dollars ascend has pushed competing assets down, putting pressure on cryptocurrency prices. 

Bitcoin price tested the key $20,000 support level on Wednesday. If BTC declines further, support can be found at the $19,200 level, while resistance may be encountered near $23,000. 

Ethereum price was stable on Wednesday, trading around the $1,600 level. If Ethereum's price declines, it may encounter support near $1,550 and further down at $1,420. If the Ethereum price increases, resistance may be encountered near $1,720.

Ethereum price has been boosted in anticipation of the so-called ‘merge’, which is expected later this week. The Merge from the Proof-of-Work to the Proof-of-Stake method will be a significant network upgrade that is expected to lead to an increase in demand for Ethereum. Ethereum price has been slipping ahead of the merge, however, as markets possibly face jitters over the success of the merge.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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