The cryptocurrency market is facing selling pressure again, erasing the gains of the week. Ethereum dropped over 8% in the past two days, triggering a sell-off in other altcoins like Cosmos and Avalanche.
Altcoin Market Pressure
Ethereum fell below $1,850 after briefly touching $2,000. This decline prompted a broader sell-off in altcoins, including Cosmos (ATOM) and Avalanche (AVAX), which are continuing their correction phase.
Double Bottom Formation Holding
Despite the recent downturn, ATOM and AVAX have maintained their double bottom formation—a technical structure that often signals a potential trend reversal. Both tokens bounced off key support levels earlier but the broader market correction has pulled them back towards these crucial areas.
What to Expect Next?
Bitcoin dominance rose from 61.34% to 62.12% and is approaching major resistance. Two scenarios are possible: a rejection at the resistance line, which could be bullish for altcoins, or a breakout above, which may intensify selling in ATOM and AVAX.
Cosmos and Avalanche are holding key support levels, but their fate is tied to Bitcoin's dominance. The coming days will be critical in determining the market’s direction.
