ETH starts to push higher as DeFi market stagnates
Cryptocurrency market under pressure after new all-time high for ETH
Today's edition of OKEx Insights' Crypto Market Daily covers Bitcoin, Ethereum, altcoins and DeFi.
The digital asset market is under pressure today as sellers are attempting to push valuations down.
The total cryptocurrency market capitalization is currently down 5.2% over the past 24 hours, as per data from CoinGecko, while BTC is down a similar percentage at 5.4%. Yesterday's darling, ETH, is down 6.9% while DOT and LTC are down 9.3% and 9.4%, respectively. BTC dominance, meanwhile, is currently 64.3%.
Sellers are likely taking advantage of an injection of bearish sentiment following the United States Treasury secretary nominee Janet Yellen's statements yesterday that Bitcoin and cryptocurrencies are "mainly" used for illegal activity and illicit financing — despite hard data proving otherwise.
The longest period of "extreme greed" for crypto on record
The cryptocurrency market is long overdue for a correction — at least, in terms of sentiment.
According to the Crypto Fear & Greed Index, a popular sentiment tracker, the digital asset market has been exhibiting signs of "extreme greed" since at least November 2020 — the longest period of such sentiment on record.
DeFi market skims froth off the top amid correction
As is only natural, the decentralized finance market has not been spared by industry-wide sellers, and the froth mentioned in yesterday's Crypto Market Daily is being discarded.
The total value locked in DeFi has decreased from yesterday's $24.77 billion to today's $23.35 billion, as per data from DeFi Pulse. Maker dominance, however, has remained virtually unchanged at 18.46% — a negligible difference of only 0.01% from yesterday's reading.
The biggest losers in terms of total value locked are currently lesser-known projects, including:
- RAY: -52.77%
- PerlinX: -28.07%
- Melon: -21.93%
Among the top decentralized exchanges, Curve Finance has seen the slightest decrease in TVL with a drop of only 1.82%. Uniswap and SushiSwap, meanwhile, have seen decreases of 5.78% and 9.24%, respectively.
Top altcoin gainers and losers: OKT up more than 9%
- GTO/USDT +49.15%
- HBAR/USDT +31.00%
- PMA/USDT +13.00%
- MEME/USDT -13.11%
- XSR/USDT -18.70%
- LMCH/USDT -21.83%
BTC technical analysis: Sellers currently in control after lower high
The price of BTC is showing signs of exhaustion today after sellers successfully forced the foremost cryptocurrency into putting in a lower high. It is currently trading below the ribbon of exponential moving averages on the four-hour time frame as bid support gets tested.
ETH technical analysis: Holding up better than BTC
The price of ETH is currently testing the four-hour EMA ribbon for support after finally breaking its old all-time high yesterday. Failure to find support at the ribbon could see the price fall toward 1,120 USDT in the short-term. In that case, bulls may start to worry about a long-term double-top formation.
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OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.