In less than 10 minutes, Ethereum fell 26%, what do analysts think about the market outlook?

After an almost unstoppable rally, Bitcoin and Ethereum faced an extreme correction a few hours ago.

According to some reports,Bitcoin fell by around $1,500 in five minutes after topping $12,000 for the first time in a year, while Ethereum plummeted 26%.

The extreme move -- arguably one of the fastest declines in the market's history -- sent ripples across the market.

$1 billion worth of bitcoin and ethereum futures positions were liquidated in those 5 minutes, according to a trader, suggestingBuyers are extremely overleveraged on the rally, because they might think it's a mature market.

Analysts are still grappling with the extreme volatility in bitcoin and ethereum prices, especially ETH, which fell to as low as $303 on some platforms and is in the spotlight again,secondary title

What's next for Ethereum?

Somehow, despite the asset's vertical decline,But many analysts remain bullish on Ethereum.

One trader shared,Both are in a technical uptrend as Bitcoin stabilizes at $10,500 and Ethereum holds resistance at $360, the level where Ethereum found its top at the peak of its 2019 rally.

Both cryptocurrencies closed above their respective support levels to confirm that the bulls are still in control.

This optimism was echoed by another commentator who shared this chart below, the ratio between Ethereum and Bitcoin (ETH/BTC). It shows that Ethereum’s crash quickly knocked ETH down to $303, and the bulls quickly picked it up, with the price almost back to pre-crash levels.

This is a sign, the trader said,Showing that Ethereum is still in the macro bull market, which means the drop is only a temporary setback.

One commentator took a more cautious approach, arguing that Bitcoin and Ethereum could start range-bound moves here, as traders reset, assessing what happens next:

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It can be said,

It can be said,The fundamentals are still in favor of Ethereum.

According to data from DeFiPulse,The value of tokens locked in decentralized finance (DeFi) applications surpassed $4 billion for the first time, a metric that has grown by around 600% since the start of the year.

The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.

The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.