Ethereum experienced a slight relief bounce overnight, rising to $3,120 after dropping below $3,000 for the first time since September.
The world’s second largest cryptocurrency is now 36.2% lower than its peak of $4,885 as the entire cryptocurrency market begins to buckle under the pressure of a bear market.
In order to regain a bullish market structure, Ethereum needs to trade back above $3,350 before making a series of higher lows that would signal a reversal.
For the time being, however, Ethereum remains in a deeply troubling downtrend with a move to $2,650 and $2,260 on the cards over the coming weeks.
The market is in an eerily similar state to that in 2018, which saw assets like Ethereum eventually lose more than 80% of their value in a matter of months.
While the short-term outlook remains dreary, it’s worth noting that the cryptocurrency market has a habit of bucking the trend when investors least expect it. If Ethereum can begin to gather some bullish momentum, there are a lot of short positions beneath $4,000 that would be ripe for a squeeze.
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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.
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