Bitcoin and ether moved lower on Tuesday as both drifted toward key technical support levels, while DeFi tokens led the broader market selloff. A few exceptions, including XLM and LIT, managed to outperform despite the risk-off tone.
Bitcoin (BTC) declined 1.5% after failing to hold above $60,000 on Monday, and is now trading near $59,250, edging back toward weekend lows around $58,800. Ether (ETH) slipped 1.73% since midnight UTC to about $1,580 after repeatedly stalling at resistance near $1,640.
Both assets are now pressing against major multi-year support zones. Ether has previously bounced from this level in October 2023 and April 2025, while Bitcoin is hovering near its weakest levels since late 2024. A breakdown from here could leave the market without a clearly defined support base.
Altcoins experienced steeper losses, particularly within DeFi, where tokens such as Ethena (ENA), Jupiter (JUP), and Ether.fi (ETHFI) fell between 3.3% and 7.5% as risk appetite continued to fade.
This weakness came despite relative stability in traditional markets, with U.S. equity futures slightly higher as the S&P 500 and Nasdaq 100 each gained around 0.03%. The U.S. Dollar Index (DXY) also advanced 0.25%.
In derivatives trading, Hyperliquid’s HYPE stood out, rising over 4.3% in the past 24 hours and remaining the only major token in the green. The move appears largely spot-driven, while futures open interest has stayed steady at around 40 million tokens since June 22. Positioning remains mildly bullish, with funding rates near 10%, indicating perpetual contracts trading above spot.
Dogecoin (DOGE) recorded the largest jump in open interest among major tokens, climbing to 16 billion—its highest level since the October 10 crash and up from 13 billion a day earlier. However, positioning signals lean bearish, with negative funding rates and negative 24-hour OI-adjusted CVD suggesting aggressive selling into the market.
Elsewhere, positioning across Bitcoin, Ether, and XRP futures remains relatively unchanged, while Solana (SOL) continues to show elevated open interest near record highs, hinting at potential volatility ahead.
Volatility measures remain subdued overall. Bitcoin’s 30-day implied volatility (BVIV) fell 11% to 44% and has stabilized around that level, while Ether’s equivalent gauge (EVIV) shows a similar pattern.
On Deribit, Bitcoin puts continue to trade at a premium of over 10% versus calls across maturities, reflecting sustained demand for downside protection. Ether options show a similar short-term skew, with weekly puts priced higher than calls, though longer-dated contracts are more balanced.
Recent options activity included a Bitcoin short straddle, a strategy typically used when traders expect muted volatility and range-bound price action.
Across the broader market, DeFi tokens underperformed, while AI-linked tokens such as FET, TAO, and RENDER also fell. Privacy coins ZEC and XMR were likewise under pressure.
Even Hyperliquid (HYPE), which has been a recent outperformer, eased about 2.2% to $65.3, suggesting consolidation after its recent rally rather than a deeper reversal.
On the positive side, Stellar Lumens (XLM) gained after reports that DTCC plans to integrate its tokenized securities platform with the Stellar network by 2027, extending momentum from its strong rally in May.
Lighter (LIT) also outperformed, benefiting from growing interest in decentralized perpetual exchanges. The token has gained 23% over the past week, including strong double-digit gains in the last 24 hours.
