Markets started the new week with a slight correction.
A 15% spike in the VIX Fear Index has placed significant pressure on risk assets. Alongside $BTC , we also saw a similar pullback in the S&P 500 and Nasdaq. The main driver behind this move was Moody’s downgrade of the U.S. credit rating. Such developments disrupt global risk sentiment, which naturally reflects negatively on volatile markets like crypto.
On the crypto side, there’s no negative news flow. That’s why we can say the drop overnight was entirely global driven. Recently, Bitcoin’s correlation with the S&P 500 has been notably high both in direction and timing. This clearly shows how crucial global market tracking has become, especially after #ETF approvals.
Looking at the charts:
📈 On the weekly chart of $ETH , the long-term ascending trendline (black dashed) continues to be tested. Each dip marked with an orange circle has bounced off this trendline with strong reactions. The most recent drop also saw a solid recovery from this support zone, pushing the price back toward the $2,500 level.
🔵 The $1,500–$1,600 range remains a strong liquidity zone. In other words, buyers are stepping in when the price reaches that level. For upward momentum to continue, Ethereum needs to break above the $2,750–$2,800 resistance band. If that happens, the next targets could be $3,250 and $3,750.
My overall view is this: There’s no major issue on the crypto front. Once global markets stabilize, both Ethereum and Bitcoin are likely to resume their uptrend. As long as $BTC doesn’t drift away from the $100K target, the big picture remains intact.
We’re starting the week cautiously optimistic. Those who recognize the key support zones will win.
Wishing everyone a profitable week ahead. 🚀