Ethereum has been left reeling following a devastating sell-off that has seen it break the $1,875 level of support.
It is now attempting to cling onto the $1,720 level which, to its credit, has provided bounces on three occasions over the past three weeks.
If continuation to the downside is initiated, Ethereum would then confirm a four-month low with price targets beginning to emerge back down at $1,550 and $1,400.
From a macro perspective, Ethereum has now confirmed a series of lower highs and lower lows. This behaviour is typical of a bear market as interest consistently wanes throughout the cycle.
The timing of this recent sell-off has coincided with a slump in all capital markets, with stock market indices and Bitcoin all faltering amid a rise in Covid-19 cases around the world.
It’s worth noting that while Ethereum and the wider cryptocurrency market is delicately poised for a period of more downside, it would not be a shock for the market to go against the grain and climb back into the $2,000 region for a re-test before moving lower.
Much of it will also depend on the trajectory of Bitcoin, which itself has broken the key level of $30,000. At the time of writing it is trading at $29,730 as it awaits the open of the stock market at 9:30am EST.
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.