Bitcoin Goes Into Red the Rest of the Market FollowsJanuary 21, 2019
The price of Bitcoin was down by 5% in just 24 hours. Thus, it is now hovering somewhere around the $3,500 mark with investors worried about dragging on with the bear market. A Bitcoin sell-off has been triggered. This momentum has in turn affected other cryptocurrencies like Ethereum, EOS, Bitcoin Cash, and Ripple’s XRP.
The upgrade of Ethereum was delayed in the past week. The hard fork was delayed in response to the news about the bug. Ethereum is now 80% down from its all-time high. Investors who have been long waiting institutional investment are now disappointed.
Mati Greenspan opined that we are dealing with a flat market and that individual token development is attracting more attention.
While cryptocurrency enthusiasts are hopeful about the price of Bitcoin getting high, it is expected that there will be a turn in the situation with regulatory bodies shaping up the crypto laws in most of the countries.
The price of Ethereum declined sharply, and there are signs that buyers of Ethereum might struggle. The price of ETH did not stay at the $130.00 resistance level. The price of ETH/USD went down losing more than $20. At the time of reporting ETH price was at $116.73. The price went as down as $110 before it could show its recovery to $116.73. There is a risk for more loss, and probably ETH might revisit the $110 price level.
The 30-minute chart revealed that the price of the ETH/USD pair went down a lot below $110 and even traded for $107.51. Recovery was seen where the price transited to $112. A Fibonacci retracement was seen at 23.6% for the drop from $132.36 high to $107.51 low. Sellers defended the 50% Fibonacci retracement for the drop from $132.36 high to $107.51 low.
There is a risk of downside break for Ethereum. If buyers continue to struggle the price can even finish up at $100.00 in the coming days.
Technical indicators should ensure that the hourly MACD for ETH/USD has a bearish bias despite moving in the bullish zone.
The RSI for ETH/USD is recovering at the 25th level at a positive angle. A major support level is seen at $113, and the major resistance level is seen at $121.
A decline in the price level sets a warning that it is easy to establish an attack on the network. This is not the first time because every time the Bitcoin goes into Red the rest of the market follows. Overall the current Ethereum movement is not good to look at.