The cryptocurrency market is witnessing a severe decline, with major digital assets like Ethereum (ETH) and Dogecoin (DOGE) at the forefront of large-cap losses. This downturn is fueled by an increasingly bearish sentiment across the market and Bitcoin's ongoing volatility, which has plunged it into bear market territory.

Ethereum has experienced a marked decrease in market capitalization, plummeting by 7.8% in the last 24 hours as its price settled at $1,910.

Despite an 80% surge in trading volume, Ethereum faces persistent liquidations. Dogecoin, similarly, has suffered significant value and market cap losses, with a recent 30.5% trading volume increase proving insufficient to halt a 16.8% weekly decline and a drastic 37% monthly crash.

Crypto analyst Tony Severino attributes Bitcoin's entry into bear market territory to diminished momentum as analyzed through the Elliott Wave Theory. The bear trend for altcoins, beginning in 2022, corresponds with Bitcoin's weaker Wave 5 due to economic tightening and reduced liquidity in financial markets.

Severino also notes that Wave 5's typically weak performance often heralds an impending bear market, a trend confirmed by ongoing weak conditions for altcoins.