Ethereum is currently trading at $3,420 following a devastating sell-off that saw $75 billion wiped off its market cap in a matter of minutes.
The industry’s second-largest asset has recovered significantly from a low of $3,000, although the recent plunge has proliferated the amount of bearish outcomes over the coming weeks and months.
While the cryptocurrency market was in a healthy position at the start of the week, it now seems to have formed a local top as a result of an increase in leveraged positions that wasn’t backed up by sufficient spot volume.
Traders will be on lower high watch now, with any kind of bounce into the $3,600 region expected to be shorted in light of yesterday’s events.
Levels of support remain the same at $3,325 and $3,000 with major points of resistance coming in at around $3,600 and $4,000.
If Ethereum begins to close daily candles below the $3,000 mark, it will likely enter a medium-term downtrend with downside targets beginning to emerge back at $2,450 and $2,170.
However, if it can pick itself up and close this week’s candle above $3,650 it would demonstrate a serious show of strength, which would lead to predictions of a new all-time high before the year is over.
Much of it will also depend on Bitcoin, which is currently trading at $46,500 after a brutal rejection from the $53,000 level of resistance on Monday.
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.
More Ethereum news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
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