Ethereum has resumed its downtrend with a woeful daily close below a key level of support.
The world’s second-largest cryptocurrency is currently trading at $3,800 following a slight bounce from the $3,680 level.
However, it is now crucially trading below the diagonal trendline that provided support dating back to July.
Ethereum is now expected to re-test this trendline at $3,910. Failure to break above $3,900 would confirm it as a new point of resistance, which would see downside price targets at $3,350 and $2,880 begin to emerge.
The only way the market can trigger a reversal is if Bitcoin can form a higher low above $53,000 following its dramatic fall from $69,000 over the past month.
Many investors are now cautious of the prospect of a mutli-year bear market, similar to that of 2018 and 2019. This does not include billionaire MicroStrategy CEO Michael Saylor, who audaciously purchased $80 million worth of Bitcoin at $57,500 last week.
Cryptocurrency assets typically fall as much as 90% during a bear market, which means that Ethereum could slide back below the $1,000 mark for the first time since late 2020.
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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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