Ethereum continues to trade below the $230 level of resistance after suffering a 21% decline over the past two weeks.
The sell-off was reflected across all major cryptocurrencies with Bitcoin sliding from $10,500 to $8,800 while the likes of XRP and Litecoin also suffered double-digit descent.
In order for Ethereum to live up to its bullish start to the year it needs to break back above the $238 level before closing daily candles above the psychological level of resistance at $250.
It’s worth noting that Ethereum was trading down at $125 on January 1, so the fact that it is now worth almost double demonstrates how significant the rally was at the turn of the year.
The surge in price has been attributed to the upcoming Bitcoin halving by analysts, which will see block rewards for miners slashed from 12.5BTC per block to 6.25BTC.
However, fears over a global coronavirus pandemic have quelled any optimism surrounding cryptocurrencies as investments begin to take a back seat.
Global markets have experienced a gruelling sell-off over the past few weeks with coronavirus spreading across the Middle East, mainland Europe and the United States after originating in China.
With an uncertain future ahead on a geo-political level, key areas for Ethereum to look out for are the $219 and $198 levels of support as well as the $238 and $250 levels of resistance.
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About Ethereum
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.
More Ethereum news and information
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