Ether fails to follow Bitcoin’s lead
Ether, the second-largest cryptocurrency, didn’t share in Bitcoin’s modest bounce. It dropped another 1% on Friday, extending its losing streak to three consecutive days. At last check, it was holding around $1,550. This divergence suggests that the market’s weakness might not be over, and that investors are still cautious.
U.S. equities start Friday in the red
The broader financial mood isn’t helping either. U.S. stock futures pointed to a weak open on Friday, with Nasdaq 100 futures down 1% and S&P 500 futures sliding 0.4% since midnight. The technology rally that dominated the past three months is continuing to unwind, adding pressure to risk assets like crypto.
AAVE bucks the trend
Not every token suffered. Aave, the native token of the DeFi lending platform, added as much as 6.8% since midnight. That builds on a 17% gain over the past week, following a CoinDesk report that crypto exchange Kraken is looking to acquire a 15% stake in the DeFi company. It’s a reminder that specific news can still push prices up even when the broader market is sliding.
Derivatives data points to more pain
But don’t let the bounce fool you. Derivatives data suggests that traders are bracing for further declines. Open interest and funding rates signal that many still expect downside risk. “The recovery is fragile,” one analyst noted. “We could see another leg down if Bitcoin loses $58,000 again.”
For now, the market is clinging to that support level. But with equities weakening and Ether struggling, the crypto community is watching closely. The next few days might tell us whether this is a temporary rebound or the start of a deeper correction.
