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.
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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