This week, the cryptocurrency market experienced a significant decline, affecting the value of most assets including Bitcoin and Ethereum.
Major Cryptocurrencies Decline
Ethereum fell to $2,100, down over 47% from this year's high, while Dogecoin hit $0.2060, its lowest since November 4. Ripple also saw a decline to $1.8010, down by 47% from its previous peak. Other altcoins such as Solana, Polkadot, and Chainlink experienced double-digit losses but have regained some ground by the end of the week.
Impact on Market Sentiment
The overall market retreat is tied to concerns about a trade war between the US and key trading partners including China, Mexico, and Canada. Former U.S. President Donald Trump announced a 25% tariff on imports from Mexico and Canada, and a 10% tariff on Chinese imports. While tariffs on Canadian and Mexican goods were temporarily paused, the fear and greed index fell to 35, indicating dominant fear, which historically correlates with cryptocurrency declines.
Technical Signals and Potential Recovery
From a technical perspective, altcoins may see support through a hammer candlestick pattern on the weekly chart — a known reversal signal. Bitcoin has also formed a bullish flag pattern at the same level, which could indicate a potential recovery in the future.
Despite the current market decline, some technical indicators suggest the possibility of recovery. However, global trade uncertainties continue to exert significant pressure on investor sentiment.
