Ethereum is currently trading at $2,639 after bouncing significantly from its weekend lows of $1,735.
The industry’s second largest asset by market cap is still seething following a sensational blow-off top at $4,400 following months of continuous price action to the upside.
Ethereum lost more than 60% of its value in just 12 days, coinciding with a chaotic fall in the price of Bitcoin, which ended its uptrend with a plunge to below $30,000.
Analysts remain cautious on cryptocurrencies as a whole following the drop, with it seeming as though the 2020 to 2021 bull run has now met its demise.
Both Bitcoin and Ethereum are now in a downtrend on all higher time frames following a series of lower highs and lower lows.
This does not mean that a prolonged bounce to the upside is off the cards, in fact Ethereum is quite likely to test higher before printing a macro lower high to confirm the arrival in a bear market.
Ethereum could rally to as high as $3,400 before rejecting, which would present an opportunity to form a new lower low at $1,550 during the next crash.
It’s worth noting that Ethereum has still enjoyed a tremendous year in terms of price action, rallying from below $1,000 at the turn of the year to $4,400, but it is now expected to enter a prolonged downtrend with price targets beginning to emerge back below the $1,000 level of support.
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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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