Ethereum has embarked on a 4.6% move to the downside this morning after a significant drop in positive sentiment following the Twitter hack that swept across the industry yesterday evening.
Leading figures in politics and entertainment had their accounts hacked before thiefs wrote tweets pleading for followers to send Bitcoin to a wallet.
Losses so far are estimated to be around $250,000, although the details that have also been linked from the breach could be worth far more.
The association of cryptocurrency and the scam is undoubtedly a step backwards in terms of mass adoption as it will put newcomers off from entering the industry.
At the time of writing Ethereum, which is the second largest cryptocurrency by market cap, is trading at $231 after facing a fourth rejection from the $250 level of resistance in the past six weeks.
Its failure to break above the psychological level at $250 may be telling, but it’s worth noting that Ethereum remains in a more bullish posture against its Bitcoin trading pair as it continues to use the 0.0254BTC level as support.
While price action has been very low on the volatility scale in recent months, it seems as though it is coiling up for a major move in the coming weeks with a news event like the hack potentially acting as a catalyst.
If Bitcoin begins to dive to around $8,830 altcoins like Ethereum will follow with levels of support coming it at around $219 and $199, the latter of which is also in confluence with the daily 200 moving average.
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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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