Ethereum moved below $1,600 on Jan. 25, with bears selling previously overbought cryptocurrencies. After days of uncertainty, sentiment shifted in crypto markets, with a red wave washing away recent bulls. Bitcoin also dropped below $23,000 as a result of today’s sell-off.

Bitcoin

Bitcoin (BTC) fell below the $23,000 level on Wednesday, as a red wave swept through cryptocurrency markets.

Following a high of $23,048.18 on Tuesday, BTC/USD hit an intraday low of $22,406.08 earlier in today’s session.

As a result of today’s drop in price, bitcoin fell to its weakest point since Sunday, breaking out of a floor at $22,500 in the process.

Looking at the chart, the drop came as the 14-day relative strength index (RSI) fell to its lowest level since last Thursday.

At the time of writing, the index is tracking at a level of 79.93, which comes less than 24 hours after hovering at 85.09.

Since its earlier breakout, the world’s largest cryptocurrency has somewhat rebounded, and is currently trading at $22,614.62.

Ethereum

Sentiment in ethereum (ETH) also shifted on Wednesday, with prices falling below a recent support point at $1,600.

ETH/USD slipped to a bottom of $1,530.80 on Wednesday, following a peak of $1,630.47 during Tuesday’s session.

Since breaking out of its $1,600 floor, ethereum appears to be heading towards a lower level of support at $1,500.

Like with bitcoin, today’s red wave comes as bears have finally opted to reenter the market, as a result of prices being overbought.

Ethereum’s 14-day RSI is currently sitting at 61.07, which is its lowest point since January 8, and this comes a day after breaking out of a floor at 74.00.

There appears to be an upcoming support area at 58.00, and if this remains firm, ETH could manage to stay above $1,500.

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Could we see cryptocurrencies continue to fall in the coming days? Leave your thoughts in the comments below.