Bullish optimism seen earlier in the week faded on November 4 after recent comments from the chairman of the US Federal Reserve, Jerome Powell, confirmed that the central bank would soon begin to reduce its monetary policy of easing and buying bonds.
These statements appear to have started a series of price drops in the cryptocurrency market and both Bitcoin (BTC) What Ether (ETH) they are under pressure right now.
Data from Cointelegraph Markets Pro and TradingView show that price action for BTC issued a warning when the price briefly dipped to $ 60,400 on November 3 and currently the cryptocurrency is struggling to hold the $ 61,000 level.
Ether has also seen its price one inch lower over the course of the day after setting a new high of $ 4,664 on Wednesday. At time of writing, the major altcoin is trading at $ 4,473, marking a 5% decline.
According to the independent market analyst “Rekt Capital”, Ether needs to close the week above its previous all-time high of $ 4,460 if it hopes to sustain its momentum to the upside.
USDETH made a new All Time High this week
All ETH needs to do to continue this positive momentum is Weekly Close above it previous ATH (blue)
– Rekt Capital (@rektcapital) November 4, 2021
The altcoins that had risen the most took the brunt of the fall
The pullback in BTC and Ether has hit the altcoin market hard and put most tokens in the top 200 in the red.
Some of the hardest hit tokens are projects that have seen some of the biggest gains in recent weeks, including a 17.22% decrease in the price of SHIB and a 38% decline in the price of OriginTrail (TRAC), which recently shot to a new high after being listed on Coinbase.
However, there are some bright spots on the market in the middle of today’s Red Sea. The AI Powered Delegated Proof-of-Stake Protocol Velas (VLX) has seen its token gain 30.4% on the day and is now trading at $ 0.4341, while Chromia (CHR) has gained 26.47% and Amp has seen its price increase by 20.53%.
The global cryptocurrency market capitalization currently stands at $ 2.686 trillion and Bitcoin’s dominance index is 43%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.