Ethereum has experienced a death cross on the daily chart with the 50 moving average crossing the 200MA to the downside for the first time since August.
It is now desperately clinging onto the $134 level of support after failing to breakout above $145 on Tuesday.
A break down from this level will result in a test of support at $109, although the psychological level at $100 may also be tested.
A lack of significant volume following the sell-off on 12th March, coupled with the death cross, indicates that further price action to the downside is on the cards in the coming weeks.
Much of it will also depend on the direction of Bitcoin as it grinds along the $7,000 level of resistance, although a bullish catalyst may be required for a breakout to come into fruition.
From a fundamental standpoint global capital markets continue to bleed as a result of the coronavirus pandemic, which has taken the lives of thousands and caused substantial economic uncertainty.
Stock markets in America, Europe and Asia have seen the worst decline since the 2008 financial crisis, with some analysts suggesting that it may get far worse as the virus continues to spread.
The fear and uncertainty has spread to the cryptocurrency market as investors seek to liquidate assets into fiat currencies to free up cash-flow.
However, the likes of Ethereum and Bitcoin have recovered more than stock markets over the past fortnight, with ETH being 31.26% up against its USD trading pair.
Key levels of resistance to look out for in light of a breakout would be $158 and $181.
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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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