Ethereum is currently trading at $2,639 after bouncing significantly from its weekend lows of $1,735.
The industry’s second largest asset by market cap is still seething following a sensational blow-off top at $4,400 following months of continuous price action to the upside.
Ethereum lost more than 60% of its value in just 12 days, coinciding with a chaotic fall in the price of Bitcoin, which ended its uptrend with a plunge to below $30,000.
Analysts remain cautious on cryptocurrencies as a whole following the drop, with it seeming as though the 2020 to 2021 bull run has now met its demise.
Both Bitcoin and Ethereum are now in a downtrend on all higher time frames following a series of lower highs and lower lows.
This does not mean that a prolonged bounce to the upside is off the cards, in fact Ethereum is quite likely to test higher before printing a macro lower high to confirm the arrival in a bear market.
Ethereum could rally to as high as $3,400 before rejecting, which would present an opportunity to form a new lower low at $1,550 during the next crash.
It’s worth noting that Ethereum has still enjoyed a tremendous year in terms of price action, rallying from below $1,000 at the turn of the year to $4,400, but it is now expected to enter a prolonged downtrend with price targets beginning to emerge back below the $1,000 level of support.
For more news, guides and cryptocurrency analysis, click here.
About Ethereum
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy in to his proposal.
More Ethereum news and information
If you want to find out more information about Ethereum or cryptocurrencies in general, then use the search box at the top of this page. Please check the below article:
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
You may be interested in our range of cryptocurrency guides along with the latest cryptocurrency news.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.