Cryptocurrency’s second-largest project in terms of market cap, Ethereum, completed a 45% correction to below $200 yesterday evening.
The substantial drop in the price of Ethereum comes just three weeks after it hit yearly highs of $365.
It hasn’t been the only altcoin to suffer in recent weeks either, with $120 billion being wiped from the cryptocurrency market cap since June 26.
While support has now been established at the $200 mark for Ethereum, the lack of a bounce or significant buy volume could suggest that this level won’t hold for long.
The next level of support to the downside comes in at around $180, which would mark yet another 10% drop in price.
From a fundamental standpoint, in 2017, Ethereum rallied alongside Bitcoin before eventually peaking at an all-time high of $1,420. The difference in 2019 is that the hype surrounding ICOs has withered away, leaving Ethereum as a platform fairly unused.
During the last bull run, the Ethereum network was clogged with newcomers looking to hop on board the latest ERC-20 project. But today, there is a severe lack of projects worth investing in.
This is one of the main reasons why Ethereum has stuttered this year, despite Bitcoin rallying from $3,150 to $14,000.
While there is a lack of bullish cases for Ethereum, regaining price above the 200 exponential moving average (EMA) on the daily chart could establish a platform for a further rally to the upside.
The 200 EMA is currently sitting at around $220, but a rally would need to happen within the next week to avoid the dreaded death cross, which would see the 100 and 55 EMAs cross to the downside.
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