Ethereum Crashes to Monthly Low – Is There Worse to Come?
Crypto’s second biggest currency, the $285 billion market cap $ETH token underpinning Ethereum, the blockchain with the most commercial activity, has crashed to a one month low overnight.
On paper, Ethereum’s 24-hour loss of 1% is in step with the trillion-cap market leader Bitcoin ($BTC) which shed the same amount.
Bitcoin currently changes hands at $56,172, while Ethereum is about $2,369. Both leading cryptocurrencies shed roughly 6% over the last seven days.
The last time Ethereum traded this low was on August 7 last month, when it’s price bottomed out at $2,351 after a heavy market crash two days prior.
The last time Ethereum traded consistently in the $2,300s was in early February this year.
Ethereum has been struggling a little this year. The launch of spot Bitcoin ETFs in January helped pull up the price of all cryptocurrencies considerably, including Ethereum.
Spot Ether ETFs came next, back in mid-Summer, but cooling inflows have helped dampen investors’ sentiment.
Ethereum is currently trading far short of its $3,500 resistance level, seen throughout the summer.
If it continues to shed over the weekend, $ETH could begin next week consolidating a new support level of around $2,000.
However, there are two indications that holders may not incur further losses.
The first is that Ethereum’s price has risen in the last hour closer to its thirty-day moving average of $2,382.
The coin’s rising relative strength index (RSI) of 44 suggests investors are doing a spot of dip-buying.
Ethereum is one of the two giants that virtually nobody doubts will have a place in a post-adoption landscape.
However, being so thoroughly established, Ethereum’s price movements nowadays are a little conservative.
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