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The 1-month Price Action on Ethereum saw a gain of nearly 60% before sharply dropping to $130 support level. The drop coincided with the Constantinople Update on Ethereum. The euphoria of the Ethereum price High soon melted down after failing to find support near the $160.
At the time of writing the price of Ethereum is $130 and Ethereum market capitalization was 13.5 billion dollars. Ethereum had dethroned Ripple last month as the second largest cryptocurrency by market capitalization. However, if the price drops another 6%, the flipping would occur again.
The price is moving in a descending wedge after reaching the 2-month of $168. The Price found support near 38.2% at $144. However, that too was broken as the bearish momentum for the market continued. The next support area is near the $124 level which coincides with 23.6% of the scale.
The MACD for ETH/USD is placed in a massively bearish zone. The next significant resistance is forming at $131 level. The price is trading above the 100-day moving average. However, a break below the moving average would call out the bears again. Ethereum chart ticker also broke the Bollinger band to suggest bearish momentum.
The Ethereum Foundation conducted a hard fork at block 7,280,000 at 7.52 pm UTC which marked the successful implementation of the Constantinople update. Despite the hype on Twitter and Reddit, the price showed adverse action after the release.
On 4th March, the third largest Ethereum Wallet was reportedly moving funds from a personal wallet to Binance. This necessarily implies that a ‘whale-like’ sell order could be next in the chain of events. The Price of Ethereum during the beginning of the year had bottomed at $105, a move below the 200-day SMA at $126.5 would trigger an extreme bear signal.
The cryptocurrency markets too lost $4 billion in a flash decline early on Monday. The Bitcoin price is looking for support near the $3700. While most crypto-traders have called a bottom, the bearish momentum still seems to persist.