Cryptocurrency investors are facing a challenging time as the market experiences another day of significant losses, particularly in altcoins. The Federal Reserve's interest rate decision and inflation figures have triggered a chain reaction of selling, leading to a sharp decline in cryptocurrency prices.

Ethereum Price Drop

Despite the approval of an Ethereum exchange-traded fund (ETF), the price of Ethereum has dropped to $3,500 levels due to negative market sentiment. The increase in bond yields and expectations of higher interest rates have led to a flight from risk markets, causing a correction in the cryptocurrency market.

Whales Selling

Data shows that Ethereum whales with balances between 1 million and 10 million ETH have reduced their holdings by 1%. Additionally, whales with assets between 100,000 and 1 million ETH have also started selling. This selling pressure has contributed to the price drop.

Technical Correction

The Relative Strength Index (RSI) has dropped from overbought levels, indicating a technical correction. If the price maintains the $3,475 level, further dips can be avoided. However, if the price breaks below this level, a return to the $3,600 to $3,800 range is likely.

Conclusion

The cryptocurrency market is experiencing a challenging period due to Fed rate hike fears and negative market sentiment. Investors are advised to exercise caution and monitor market developments closely. Despite the short-term correction, the long-term potential of cryptocurrencies remains promising.