Bitcoin and Ethereum sell-off fades as dollar rally stalls

After selling dominated the digital assets market on Wednesday, weighed down mainly by a strong dollar and uncertainty around the consensus change in Ethereum, some calm seems to have settled in digital tokens, as they are retracing some of their recent declines. Bitcoin hit a three-month low of $18,500, from where it restructured upwards to resistance at $19,500. Despite the June low of 17,500 support still exerting traction, experts indicate that the selling momentum appears to have lost steam.

"The situation is not great for the cryptocurrency, with bulls perhaps hoping that overall market sentiment may hold some of yesterday's rally," commented Craig Erlam, analyst at Oanda. "One thing worth noting is that the downside momentum seems to be fading, and that could suggest that we are seeing profit-taking as we approach the June lows, which may support the price in the near term," he added.

As for other tokens, Ethereum is also trying to shake off some pessimism unleashed by problems encountered in the eponymous blockchain upgrade, which prepared the network for the shift from consensus to proof-of-stake. The deployment of 'Bellatrix' was successful, but not without some bumps that raise fears about the merger of the 'Beacon' chain, where all the tests have been deployed, with the main network that will take place between September 15 and 19.

The second 'crypto' by market capitalization rebounded 6% in the last 24 hours and stands above $1,600, while the rises are somewhat more moderate for the rest of the tokens since yesterday. Total capitalization remains below the $1 trillion mark, although experts highlight encouraging price action for digital tokens as a whole.

The terra classic token (LUNC) is particularly noteworthy, as it seems hell-bent on coming back from the dead after its total collapse in May. A recently announced launch rewards program -airdrop- and support on some of the major digital asset exchange platforms sent the token soaring, after it gained 43% just in the last day.