Financial services firm Matrixport has issued a market analysis warning of Bitcoin’s challenges in sustaining a rebound and highlighting significant downside risks for Ethereum.
The firm’s analysis emphasizes that Bitcoin must decisively hold above the $105,000 support level to maintain its technical structure. Failure to sustain this threshold could signal further weakness.
Ethereum faces a significantly higher risk profile according to Matrixport. The report cautions that Ethereum’s recent price increase lacks fundamental support and appears primarily fueled by leveraged trading activity.
This elevated leverage metric makes the Ethereum market particularly vulnerable to sharp downward price movements. Recent price corrections are seen as signals indicating a persistent risk of continued downside pressure.
Given Bitcoin’s struggle to stage a robust recovery and the amplified vulnerability of Ethereum due to leveraged positions, Matrixport advises investors to exercise high levels of caution amid the current volatile market conditions.