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.
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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