Bitcoin Rebounds, but Why is Ethereum Unstable?

▲ Bitcoin (BTC), Ethereum (ETH) ©Godasol

The cryptocurrency market has rebounded, boosted by the stock market rally, but Ethereum's bearish signals are emerging as a source of instability for the entire market.

According to investment media FXStreet on May 1 (local time), the total cryptocurrency market capitalization rose by 1.29% over 24 hours, reaching approximately $2.57 trillion. The Nasdaq 100 and S&P 500 hitting record highs stimulated risk asset preference, and the strengthening Japanese Yen, leading to a fall in the dollar index, also positively impacted the market.

Bitcoin (BTC) has confirmed support near $75,000 and is once again attempting to break past $77,000. However, it is difficult to confirm a shift to an uptrend until the $80,000 resistance is decisively broken. If this level is surpassed, there is potential for further upside to $84,000-$85,000.

In contrast, Ethereum (ETH) is showing a more cautious trend. Over the past three weeks, it has hit the 200-week moving average and then pulled back, reflecting a general bearish trend across altcoins. However, its rebound from the long-term uptrend line at the beginning of the year partially offsets the downside.

From a market structure perspective, upside appears limited. Approximately $1.5 billion in call options expiring in May and June are concentrated around the $80,000 mark, creating a structure where market makers exert selling pressure when prices rise to hedge their risks. This is identified as a factor slowing down Bitcoin's upward momentum.

Meanwhile, from a seasonal perspective, May is considered a positive month. Over the past 15 years, it has seen gains 9 times, with an average increase of 26.5%. Experts analyze that 11 current indicators point to the optimal buying zone within five years, suggesting an environment similar to late 2022 is forming.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*