Prices of BTC and ETH Slid, and Stablecoins Traded in a Diverse Manner

Know how the drop in the price of BTC and ETH is affecting other stablecoins and altcoins

Bitcoin (BTC) has been on a tear this year, rising from a price of $15K to $31K in under four months. However, it has since fallen to the $28K range, with multiple attempts to break past the $30K resistance level failing. On the other hand, after a long, cold crypto winter that saw Ethereum (ETH) drop in value by 36.22% in 2022, it truly turned the corner this year. Year-to-date as of May 11, Ethereum has gained more than 60% and stands at $1,833.50. However, the second largest coin is also having a hard time keeping up with its resistance level. In this article, we will talk about why the price of BTC and ETH are dropping and the impact of other stablecoins and altcoins.

Why are the Prices of BTC and ETH Dropping?

Bitcoin (BTC) now appears to be in a state of limbo, with investors and analysts eagerly awaiting the next move. On the bull side, the collapse of U.S banks and the increasing adoption of cryptocurrency make it a strong buy. On the bear side, some analysts argue that the economy is too unstable for Bitcoin (BTC) to gain significant ground.

But what are the price levels to watch out for? Let's look at the charts. The important resistance block to watch is the $29.7k – $31.5k range. A break past this hurdle could open the door for Bitcoin (BTC) to rally higher to at least $40k, with some analysts predicting a move as high as $50k in the near term.

A failure to break past this resistance range could see Bitcoin (BTC) retrace and potentially fall to the $24k – $25k zone. Some sidelined investors may re-enter the market at these levels, thus providing support for Bitcoin (BTC)'s price.

Due to the selling pressures of Bitcoin (BTC), the second largest Crypto by market capitalization, Ethereum (ETH) is crashing the market. Ethereum (ETH) was steadily approaching $1900, with a previous record increase which was due to Shanghai's Blockchain upgrade.

Many Crypto Analysts thought that Shanghai's Blockchain upgrade would cause a price fall, but this was not the case. It turns out the upgrade caused Ethereum (ETH) to have steady increases. The upgrade allowed Ethereum (ETH) to shift from a proof of stake protocol to a proof of work protocol.

Effect on Stablecoins and other Altcoins

Barring the US Dollar pegged USD coin, all other top altcoins witness a price drop. From Litecoin, Polygon, and Dogecoin to Avalanche, Shiba Inu, XRP, and Solana, all the altcoins were trading in the red.

The global cryptocurrency market cap was trading significantly lower, hovering at the $1.14 trillion mark as it dropped as much as 0.48% in the last 24 hours. However, the total trading volumes jumped more than 47.31% to $46.25 billion.

The crypto market witnessed new weekly lows as Bitcoin slipped below $28,000 and currently trading at US$27,500. However, the drop didn't affect any of the stablecoins.