Panic or Party? The Crypto Crash Nobody Saw Coming! 🤯

So, Wednesday arrived with that dramatic flourish in which the US graciously paused tariffs for 90 days — except for China, who apparently didn’t RSVP to the global party. Markets everywhere did a joyful jig, and our dear cryptos, $ETH and $SOL, took a victory lap, boasting 12.4% and 13.2% gains. Then (because the universe loves a punchline), both plummeted over 4% on Thursday. Uh-huh, it’s like they peaked too early at the buffet. Where are they waddling off to now?

Market drops on better than expected CPI data release

Before we start analyzing $ETH and $SOL like hawks in a popcorn factory, note that the Trump tariffs are still lurking, and that shiny new U.S. CPI data has just been tossed into the mix. The CPI numbers look positively radiant, with month-on-month Core CPI at 0.1% (forecast was 0.3%) and year-on-year CPI at 2.4% (also waltzing in better than 2.5% forecast). Unemployment claims? A modest 223K, up from 219K, so basically the same old dance moves.

Yet, despite this apparently cheerful news, the crypto market decided to have a little sulk. Is it the tariffs? Are crafty market makers messing with everyone’s emotions? Or did we collectively forget to knock on wood?

$ETH downtrend continues

Short-term charts for $ETH look about as pleasant as stale crisps. Price is tumbling dramatically, and if we don’t see a sassy higher high and a confident higher low soon, $ETH might just continue its melodramatic descent. Wednesday’s pump gave the descending trendline a little peck on the cheek, but unless it plants a full-on kiss and stays above it, we might as well wave goodbye.

A bit of optimism, though: maybe price is merely pulling back to confirm $1,600 as support. For a reversal, our bullish friends need to smash through that stubborn trendline and post a higher high above $1,960 (because who doesn’t love lofty goals?).

Could the tide be about to turn for $ETH?

On the weekly timeframe, $ETH appears to be guarding the $1,600 level like it’s the last donut in the box. There was even a wick that dipped to $1,400 — classic drama queen move — right around the top of the 2017/2018 bull market. The weekly RSI is practically waving a neon sign reading “We don’t go this low often,” so maybe the grand reversal is in the hands of, oh, a certain US president with flamboyant hair. No pressure there!

$SOL bulls attempt to arrest precipitous slide

The 8-hour chart for $SOL mirrors $ETH’s comedic tumble. Lower highs, lower lows, tears, and possibly a bit of chocolate bingeing. We just saw another rejection at the trendline, and now the bulls have their work cut out, trying to make $112 behave like support once again.

$SOL price between critical support and resistance levels

Peeking at the weekly chart, $SOL’s key support sits around $94, with a narrow band of resistance from $112 up to $122 looming overhead. The Stochastic RSI is so low it’s practically scraping the floor (someone get it a chair). It will turn up eventually, but the question is whether it’ll do so in time for a dramatic comeback montage.

A big catalyst to ignite markets

For both $ETH and $SOL, any surge in price probably hinges on the broader market’s mood swings. We saw how one half-baked announcement from President Trump paused the worldwide slump. Will there be some grand catalyst next, like a handshake deal with China or maybe a surprise cameo on reality TV? Who knows. But it’s crypto, so brace yourselves and maybe keep a stiff drink on standby. Just in case.

2025-04-10 17:08