Ethereum and major altcoins including BTC appear vulnerable to a deeper correction after the Paxos crackdown dampened crypto market sentiment. The crypto market is lower today as market volatility increased ahead of the Consumer Price Index (CPI) report, which measures inflation, due to be released on February 14th. Ether is struggling to gain a foothold at the $1,500 support. The 20-day EMA ($1,567) has been turned down and the RSI is in the negative territory, indicating that the bears have the upper hand. The asset has seen a rise in global volume by almost 42% in the last 24 hours while market dominance is at 18.34%.
At the time of writing, ETH was trading at $1,504.5.
ETH, after giving a breakout above the range ($1,100 to $1,250), surged almost by 36% and made a high of $1,714.6. The bulls struggled to break the key resistance zone at $1,700-$1,750 (Horizontal Trendline) and the upper shadows around these levels indicated profit booking or indecision in trend and the prices dropped to $1462.2. However, ETH gave a daily closing above $1,500. The asset has a strong support zone from $1,450 to $1,500 and currently, it is trading at this key support level. If it holds and sustains above the support then we can expect the bulls to resume the up-move whereas a break below the support will lead to a further downfall and the prices can test the next support which is at $1,250.
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