The cryptocurrency market is experiencing another day of significant losses, particularly in altcoins. This downturn is attributed to the Federal Reserve's interest rate decision and inflation figures, triggering a chain reaction of events. Despite the approval of an Ethereum ETF, the price of Ethereum has dropped to $3,500 levels due to negative market sentiment.

Market Sentiment and Interest Rates

The increase in bond yields, triggered by recent data, has led to a flight from risk markets. Investors are expecting further rate hikes, causing a slowdown in the decline of inflation. This shift in market expectation has reduced the likelihood of a rate cut before December. As a result, bond yields are rising, leading to a decline in cryptocurrency prices.

Ethereum Whales and Price Movement

Despite the ETF approval, Ethereum's price drop is attributed to the selling pressure from whales holding 1 million to 10 million ETH, whose supply decreased by 1%. Additionally, whales with assets between 100,000 and 1 million ETH have also turned to selling. Technically, the market is experiencing a correction following the drop from overbought levels in the RSI. If the $3,475 level is maintained, deeper dips can be avoided. Otherwise, a return to the $3,600 to $3,800 range is likely.

Conclusion

The cryptocurrency market is experiencing a tumultuous period, with altcoins facing significant losses. The Ethereum price drop, despite ETF approval, is a result of negative market sentiment and rising interest rates. Investors are advised to exercise caution and monitor market trends to determine the best course of action.