Ethereum Lost 45% Of The Cost

Ethereum Lost 45% Of The Cost

The cost of Ethereum is sharply reduced. For this, there are both technical (to a lesser extent) and fundamental grounds.

Ethereum began to fall after Bitcoin, as soon as information appeared about South Korea's intention to limit the terms of trade in cryptocurrencies in the country. The first reaction to the news was market panic, which only increased the tension around Bitcoin. Overbought cryptocurrency began to decline and "pulled along" all the others.

Later, South Korea explained that it was about strengthening market surveillance: the exclusion of shadow operations on money laundering, unauthorized mining and other actions that worsen the reputation of the virtual currency sector. However, the process was already started.

This was another confirmation of the fact that the sector is currently experiencing the development of trade and reputational risks. Earlier, China strengthened the regulation of the crypto-currency market with a simultaneous restriction on mining. Now the queue is a strict limitation or even a complete ban on access to centralized trading platforms that allow trading in cryptocurrency.

From the market, those investors who ran less prepared for sharp "mood swings" in the crypto-currency sector fled. These are the players who bought Bitcoin for $ 15-18 thousand and Ethereum for $1200-1400 and believed that the growth of quotations would be non-stop. Panic among this group of investors "pulled along" those who decided to lock in profits after an extended period of growth. As a result, Bitcoin lost more than 50% of the cost for the current wave of sales, Ethereum - 45%.

This is the payment for volatility and risk. Since the cryptocurrency is nothing, except market confidence, "mood swings" in them can be significant - both in the direction of growth and in the course of the fall.

The technical picture of trading Ethereum still looks "minor". The short-term outlook on the four-hour chart was completely downward after the breakdown of $1000. On Thursday, January 18, Ethereum traded at around $988. The daily chart draws the probability of passage to intermediate support at around $665, overcoming which realizes the most "stressful" scenario for the cryptocurrency and will send quotations to around $500.

The chances of continuing the decline are estimated as high. However, in this case, according to Ethereum, it is worthwhile to monitor the range of $ 850-950. Sellers, it is likely, not the first attempt will be able to break through this area. If the breakdown fails, there will be chances of a return within the rebound quotations of Ethereum above $1000.