In the past 24 hours, the crypto news show that Bitcoin and Ethereum have fallen by more than three percent against the US dollar – in a new crackdown that saw the cryptocurrency market losing $4 billions in valuation – falling by just about 3.5%.
While the major cryptocurrencies struggled to demonstrate signs of a potential corrective rally, some small market cap altcoins and ERC-20 tokens managed to plunge by more than 10% on average.
The Ethereum price has been experiencing a similar trend as Bitcoin as its price fell by about the same magnitude as BTC with a drop in its daily volume. Several traders have also called a bottom for Bitcoin this week, seeing the strong recovery from the $3,000 lows with the support level intact.
As one of the analysts with a handle “Hsaka” said:
“Rejected by previous support. Seems to be forming a descending channel on the LTFs (aka a way to visualize a downtrend). I often use channels for confluence with horizontal levels (both the rejections from the black horizontals were also at the channel boundary).”
When it comes to the short-term trend of ETH, another analyst named Edward Morra raised the possibility of ETH dropping to $55 and said:
“If ETH bulls lose this support and low set at $83, it is basically vacuum till next meaningful support around $55 – $45, another 35% downside from here.”
If Ethereum drops by another 35%, tokens will definitely bleed out and continue to lose their value from the already low price range, which could eventually lead some to lose all of their value in the short-term.
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