Ethereum remains in a desperate posture on all time frames, with it appearing that a major correction is on the cards over the coming weeks and months.
The industry’s second largest asset is currently trading at $1,832 having rejected off the daily 200 exponential moving average following yesterday’s daily close.
In order to demonstrate even the slightest hint of strength, Ethereum needs to begin closing daily candles back above the $2,000 mark.
Another key point of resistance is $2,150, as this is in confluence with the weekly 21 exponential moving average. Unless Ethereum can trade back above that point by Sunday, this will be the first weekly closure below the 21 EMA since the coronavirus slump to $80 in March of 2020.
With the prospect of a bear market looking increasingly likely, it’s important to remember that Ethereum began the year trading below $1,000 before embarking on a sensational rally that saw it print a record high at $4,400.
It isn’t just Ethereum that is suffering at the moment, the entire altcoin market has extended a move to the downside following Bitcoin’s drop from $65,000 to $32,700 last month.
This is reiterated by a lack of retail investment in more speculative bets like Ethereum, with investors opting for safer assets with more liquidity like Bitcoin and stablecoins.
Levels of support for Ethereum remain at $1,528 and $1,425, with the latter level being the previous record high that marked the cycle top in January, 2018.
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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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