Hype and Sui lead the decline of altcoins as Ethereum slips in value

The price of Ethereum fell below 4,300 USD on Monday morning, triggering a widespread sell-off in the cryptocurrency market and wiping out over 487 million USD in long positions. Altcoins were hit hardest, with Hyperliquid ($HYPE ) and Sui ($SUI ) leading the decline.

Reasons for the sell-off

This price drop is referred to by analysts as a "natural correction in an uptrend." It occurs just ahead of the Jackson Hole Economic Symposium on Thursday, where Fed Chair Jerome Powell will be speaking.

Funding rate: Analysts of #QCPCapital note that the funding rate of Bitcoin has been warning of trouble as it turned negative over the weekend despite rising prices.

Economic data: Higher-than-expected U.S. Producer Price Index (PPI) data has reduced market expectations for interest rate cuts in September, putting pressure on risk assets.

Next prediction

Analysts believe that if Ethereum can hold the support level at 4,150 USD, the market may consolidate before continuing its upward trend. However, if $ETH breaks this support level, a series of cascading liquidations could occur, pushing prices down to the 3,900-3,600 USD range. In that case, altcoins, especially HYPE and SUI, are likely to continue weakening.

Source: #Decrypt