Ethereum is at a pivotal moment as it heads into the typically low volume weekend, trading at $2,725 after failing to establish support above $3,000.
The world’s second largest cryptocurrency needs to ensure it continues trading above $2,600 as that would confirm a break down in price action, with downside targets beginning to re-emerge at $2,350 and $1,740.
However, it’s worth noting that in spite of a macro downtrend, Ethereum has performed exceedingly well since late January, with a 26% rise since then.
If it can form another higher low, it could well signal a macro reversal, although that would only be confirmed with a clear daily close above the $3,300 level of resistance.
Much of it will depend on Bitcoin and its positioning amidst the Ukranian crisis. Volatility has alarmingly spiked over the past few weeks as Russia storms forward to major cities in Ukraine. This has also had a significant impact on global markets a a whole, with stock market indicies in the USA and Europe slumping dramatically.
If Bitcoin can surge, and hold, above $46,000 over the coming weeks – it would confirm a bullish reversal for the cryptocurrency market which would bode well for altcoins like Ethereum.
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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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