ETH falls below $1,900 as markets react to weaker Chinese economy

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Ethereum fell below $1,900 earlier today as crypto markets continued to react to disappointing economic data from China. July figures showed retail sales and industrial production in China rose less than expected, heightening fears of a coming global recession. Bitcoin also fell on Tuesday.

Bitcoin

Bitcoin (BTC) was once again trading in the red as crypto markets continued to decline, following Monday’s disappointing economic data from China.

Figures from the world’s second-largest economy showed retail sales rose 2.7% last month, below the 5% expected.

This, combined with falling industrial production data, pushed BTC lower yesterday, with the selloff extending into today’s session.

Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,900 as Markets Respond to Weakening Chinese Economy
BTC/USD – Daily Chart

At the time of writing, BTC/USD fell to an intraday low of $23,839.77 as prices fell for a fourth consecutive session.

Looking at the chart, the 14-day Relative Strength Index (RSI) sits at 57.25, which is slightly above Monday’s low, and could be positive for bulls hoping for a reversal.

BTC has since moved away from previous lows and is currently trading at $24,030.08.

Ethereum

Like bitcoin, Ethereum (ETH) also saw volatility during today’s session, with the token falling slightly below $1,900.

On Tuesday, ETH/USD slid to a low of $1,862.74, which comes less than 24 hours after the token hit a high of $1,926.60.

Today’s low is the lowest level Ethereum has traded since August 11, when the price broke above the $1,885 cap.

Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,900 as Markets Respond to Weakening Chinese Economy
ETH/USD – Daily Chart

Ultimately, the decline comes as a key resistance point at $2,010 held firmly over the weekend, with the bears using it as a signal to re-enter the market.

Despite this, ETH is up nearly 11% from the same point last week, with the (red) 10-day moving average maintaining its upward trend.

Although the uncertainty in the global economy has impacted investor confidence, there is still a strong chance that Ethereum could break above $2,000 in the coming days.

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Will bullish momentum return to crypto this week? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic perspective to market analysis, having worked as a brokerage manager, retail educator, and market commentator in crypto, stocks, and FX.




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