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The crypto market is still reeling from one of its biggest single-day selloffs this year. Prices plummeted after U.S. President Donald Trump threatened a 100% tariff on Chinese imports, triggering risk aversion around the globe. Within hours, nearly $900 billion in market capitalization was lost before a partial recovery followed.
Ethereum and XRP were among the hardest hit and both lost over 15% for the week. Analysts believe the correction could be a technical reset instead of the beginning of a full-scale bear market. Investors are now watching with interest to see if bulls can win back lost ground. Meanwhile, interest in MAGACOIN FINANCE, a fast-rising Ethereum Layer-2 project, continues to grow as traders diversify towards tokens with stronger network exposure.
Ethereum is trying to bounce back after a sharp drop that saw the price fall below $4,000. On the daily chart, ETH broke below its ascending channel midline and 100-day moving average to find support around $3,400-$3,500, the 0.5 Fibonacci retracement.
That zone overlaps with one of the previous structure bases and thus prompts a short-term bounce back to $3,800. The RSI is still below 40, indicating weak momentum, although a close above $4,000 on the day could confirm a short-term recovery. Failure to reclaim the channel, however, runs the risk of a slide below $3,000 - a level that could render the ongoing bull cycle invalid.
On the 4-hour chart, Ethereum found temporary support at $3,400 after the drop. The RSI reached 24 and since then has turned higher, indicating oversold conditions. Funding rates also fell into negative territory, the lowest since late 2024, reflecting fear but also a potential for a rebound. Historically, such extremes are followed by short-term recoveries following a decay of selling momentum.
Analysts suggest the move could be merely a flush-out of the market to reset leverage ahead of a spot-driven rally.
XRP dropped from its resistance zone of $3.0-$3.1, and broke below a symmetrical triangle which had been in place since July. The rejection from the descending trendline coincided with the wider market crash, sending the token to $1.8 - a 55% drop.
Despite the magnitude, the macro structure is held as long as the price remains above the green ascending trendline between major 2025 higher lows. A rebound from this region could save the long-term bullish outlook.
On lower timeframes, XRP broke through its $2.8 support during the crash and triggered forced liquidations. The wick below $1.2 indicated the depth of capitulation, followed by a sharp rebound as the buyers took in the panic selling. It is now attempting to reclaim the $2.7-$2.8 range, now short-term resistance for XRP. A sustained close above it could indicate a relief rally towards $3.0, while failure could extend losses towards $2.2.
Momentum indicators have become extremely oversold, suggesting that the sellers are losing control. Analysts anticipate a volatile but slow recovery if sentiment improves across risk markets.
Amid Ethereum and XRP's consolidation, MAGACOIN FINANCE continues to gain traction as an Ethereum Layer-2 network. The project has experienced a surge in user engagement as traders rotate capital into scalable ecosystems that are connected with the core network of Ethereum.
Its design combines both community-driven growth and functional utility. Analysts say that as Ethereum stabilizes, projects like MAGACOIN FINANCE could see accelerated adoption because they directly benefit from renewed Layer-2 activity and liquidity inflows. This trend represents a broader market shift away from speculative leverage and towards ecosystem-based investments to support real utility in the market.
Both Ethereum and XRP are trying to recover from extreme volatility. Holding above $3,400 for ETH and $2.2 for XRP is key to any sustained rebound. Analysts agree that the performance of Bitcoin around $112,000 will heavily influence both assets. If sentiment stabilizes and funding rates stay negative, Ethereum could see a test of $4,200 while XRP eyes $3.0 in the coming sessions. Meanwhile, MAGACOIN FINANCE's rise underscores the market's shift toward Ethereum Layer-2 projects that combine scalability with practical utility – a segment expected to lead the next recovery phase.
To learn more about MAGACOIN FINANCE, visit:
Website: https://magacoinfinance.com
Access: https://magacoinfinance.com/access
Twitter/X: https://x.com/magacoinfinance
Telegram: https://t.me/magacoinfinance
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