On Monday morning, hopes of a peaceful resolution to the crisis in Ukraine were revived, amidst reports of a possible peace summit between Russia and the US, brokered by French President Emmanuel Macron. The White House announced that US President Joe Biden has agreed ‘in principle’ to a meeting with his Russian counterpart Vladimir Putin, as long as Russia does not invade Ukraine. The announcement of a possible meeting between the two presidents revived hopes of a de-escalation of the crisis, reducing the appeal of safe-haven assets, but failed to alleviate the pressure on crypto markets.
Hopes for a diplomatic resolution to the issue were diminished later on Monday, as Vladimir Putin signed a decree recognising the independence of the two separatist regions Donetsk and Luhansk in eastern Ukraine. Immediately afterward, he ordered Russian troops in these regions, in a ‘peacekeeping’ mission as he stated, effectively declaring war on Ukraine. The EU and the US have condemned the Russian President’s actions and are prepared to enforce economic sanctions on Russia. Crypto markets are expected to decline following these recent developments, as demand for risk-assets falls and investors turn towards safe-haven assets.
Bitcoin and Ethereum prices continued to plummet early on Monday, as a risk-aversion sentiment continues to prevail over the uncertainty of the situation in Ukraine. Stock markets and especially European and Russian stock markets also dipped on Monday, showcasing once more the growing affinity between stock markets and crypto markets. Bitcoin crashed below $37,000 following Putin’s announcements, its lowest price since the beginning of the months, while Ethereum's price plummeted to almost $2,500.
If Bitcoin price declines, it may find support at $36,000 and $33,000, while resistance may be found at $40,000. Ethereum might find support at $2,640 and further down around $2,300. In case its price goes up, it may find resistance at $3,000 and further up at $3,400.
BTC/USD 1h Chart
ETH/USD 1h Chart
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