It is clear that the last months were not good for the cryptocurrency market. Most of the cryptocurrencies suffered from the consequences of a bear market and reached the lowest levels since several months. Ethereum (ETH), has now reached new lows this year and if it breaks under $400, ETH could reach $330-$350 dollars.
Ethereum Price Drop
One of the interesting things about Ethereum is that it has never fallen below a previous all time after reaching new highs. In this case, the previous all time high before December 2017 was registered in June 2017 when each ETH was being traded around $420 dollars.
Most of cryptocurrency traders were anxiously paying attention to the charts to see whether this time Ethereum could break that rule. At the moment of writing this article, Ethereum broke this level and it is being traded around $402 dollars.
The support level at $420 has been broken and went down until where we are now. If it breaks under $400, then, the next support is located at $300 dollars. That would not be good for Ethereum. A free fall from $400 to $300 could be devastating for the community that is working in order to scale the network and developing DApps.
The RSI indicator is near the oversold point in the 12 hours’ chart at the Bitfinex exchange. That could be taken by some traders as a good entry point before the market changes direction and bulls take control over it.
Ultimately, bitcoin is the cryptocurrency that rules all the others – for the moment. In general, when bitcoin starts moving up, most of the other cryptocurrencies follow the trend. The same happens when bitcoin’s price starts to go down. So as to break this ‘almost direct’ relationship between altcoins and bitcoin, important news should appear that will disrupt buyers and sellers.
It would be interesting to see whether Ethereum is able to break the relationship with bitcoin if the downtrend continues in the next days. Additionally, if the trend does not change, we could see interesting activity in Ethereum once it reaches the $400 level.
Ethereum’s New Low – Opportunities Or Disaster?
Ethereum has reached a new record low for this year. At the moment it is being traded around $406 dollars at Bitfinex exchange. But what does it mean? Is it an opportunity to buy or it is a total disaster?
Well, it depends. If you have bought at the all time high, that’s not good news for you. But instead, if you did not buy Ethereum because its price was too high, now it may be a great opportunity. At the same time, if you are a strong believer of the Ethereum’s network, it could be a good moment to reduce the average price of the coins that you have bought.
Cryptocurrencies are volatile assets, but we need to have perspective. One year ago, Ethereum was being traded under $50 dollars. Take a look at the charts, zoom out and take decisions according to your interests.
Be sure to check out our latest article about the best ethereum wallets in order to know how to protect your ETH from hackers.