The crypto market continues its bearish start to 2026, with major cryptocurrencies posting huge losses over the weekend.
Bitcoin (BTC), Ethereum ($ETH) and Ripple (XRP) traded in the red on Monday after falling over 11%, 19%, and 13%, respectively, in the previous week.
Major cryptocurrencies lost 10%, 17% and 10.5% of their value in January, highlighting sustained downward pressure.
Bitcoin, the top cryptocurrency by market capitalization, briefly fell below $75,000 on Sunday, widening the correction.
Meanwhile, Ether is trading above $2,240 after losing 10% of its value since Sunday, making it the worst performer among the top 10 cryptocurrencies by market capitalization.
Ether reaches critical support as market correction continues
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Cryptocurrency markets had one of their worst weekends in months, with Bitcoin, Ether and other major cryptocurrencies dropping billions of dollars within hours.
Ether has lost 10% of its value in the past 24 hours and at one point fell below the $2,200 level.
At the time of writing, Ether is trading above $2,240 and could rise further in the short term if the market continues to recover.
The bearish performance comes as the entire crypto market is suffering from thin liquidity.
Analysts believe Sunday’s plunge was a result of order book dynamics, where liquidity has dried up and buy-sell trades can have a significant impact on market quotes.
This massive fire sale wiped out more than $750 million worth of leveraged positions from the market in the past 24 hours.
Long traders lost about $584 million, while short traders lost about $171 million.
However, the market could take a short-term breather after China’s recent manufacturing survey showed that factory activity is expanding slightly.
While China’s yuan tightening policy may not have a direct impact on Bitcoin, analysts are optimistic that this latest data could act as a background stabilizer rather than a catalyst for the crypto market.
Ether could fall to its June 22 low of $2,111
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of $ETHThe 4-hour chart of /USD is very bearish as Ether continues to trade below its downsloping 50-day EMA.
At the time of writing, Ether remains below $2,300, having fallen a total of 25% for five consecutive days.
If the bearish trend continues, it could retest the important support zone between $2,111 and $2,227 in the short term.
An RSI of 20 indicates an oversold condition, where selling pressure reaches extreme levels and increases the likelihood of a reversal from the nearest support level.
Additionally, the MACD histogram widens below zero as the mean line decreases, indicating a bearish bias.
If the daily candlestick closes below the $2,111 support level, Ether could fall further towards the psychological level of $2,000.
However, if support levels are maintained, $ETH In the near term, there is some resistance near $2,383, but a bounce towards the $2,500 resistance level is possible.
