Ethereum continues to consolidate in the $2,450 region on Thursday as it heads into an uncertain weekend of price action.
The world’s second-largest cryptocurrency is more than 50% down from its November high as investors begin to move into cash positions across all asset classes.
The $2,300 level remains a key level of support in the short-term, although based on price action over the past week it wouldn’t be a surprise to see Ethereum re-test $2,000 and $1,750 before the end of next month.
In order to regain a bullish market posture, Ethereum needs to climb back above the $2,875 level of resistance before going on to make a series of higher lows.
As it stands, Ethereum is in a dreadful downtrend across all time-frames as traders begin to anticipate a gruelling bear market.
Much of Ethereum’s direction will also depend on the trajectory of Bitcoin, which itself has struggled of late having slumped back to the $36,500 mark.
The Dollar index (DXY) rose to an 18-month high today to mark an increase of 8.8% over the past 12 months.
As the majority of cryptocurrencies are traded against the Dollar, further downside is expected if USD can take out the 97.6 level of resistance.
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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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