Bitcoin and altcoins took a big hit in the sharp fall last week. While BTC fell as low as $25,000, the largest altcoin Ethereum dropped to $1,550.
However, rumors that the SEC will approve ETH futures ETFs have resulted in ETH recovering relatively more and ETH losses less than Bitcoin.
Analyzing the Ethereum chart, ETH continues to show signs of weakness, with Bloomberg reporting that experts say the ETH Bollinger bandwidth is currently approaching its narrowest point.
While the narrowing of the bandwidth is considered as a harbinger of upcoming volatility, ETH's falling below the lower band is interpreted as signaling that volatility may lead to losses rather than gains.
Speaking to Bloomberg at this point, OrBit Markets co-founder Caroline Mauron said:
“The summer recession seems to be over.
The market is a little nervous after some very sharp moves last week due to low liquidity.
At this point, investors continue to be uneasy about cryptocurrencies such as Bitcoin and Ethereum.”
*Not investment advice.