Serious Breakdown in the Price of Ethereum – Negative Sentiment can pull Price Further DownMarch 4, 2019
There was a severe breakdown of the price of Ethereum, which fell to $125.89. The market dropped by 7%. The price decline is coming in just a few days of the hard fork upgrades like the Constantinople and the St. Petersburg hard forks.
Regardless, of the price decline, the coin is up by 17% in the past 30 days. The cryptocurrency remains in the 2nd position by market cap holding $13.30 billion by the value of the market cap.
The ETH/USD 4-hour chart revealed that the market has broken below the $135 support with a Fibonacci Retracement Level marked in red.
The coin went very low as it traded near the support level, thus providing for a short-term downside with 1.272 revealing a Fibonacci extension level at $125.71.
The nearest support level is a lot below $125, and it is at the $120 level. Further support is seen at $117, and the retracement level will be marked in green. On the downward trend, the extension level is seen at 1.618 with the $110 seen in the support area.
When looking from above the near perfect resistance level at .5 at $135 with Fibonacci Retracement Levels marked in red at .618 at $142.63.
The high resistance levels are situated in the $150 and the $160 mark with .886 Fibonacci Retracement level marked in red.
The 20 level is an extreme bearish territory where the RSI plummeted. Thus, the bears are dominating the market sentiment.
There is an overall decline in the trading volume ever since March.
Developers of Ethereum make use of the testnet to run their dApps or their smart contracts on the Ethereum Network. This they need to do before running the Ethereum live on their original Ethereum Network.
When connecting to the testnet, developers have to be careful, because most of the tokens that work on Ethereum also work on the testnet. Those who do not pay attention might land up accidentally sending tokens or real Ethereum to the testnet.
While several original contracts can be written by making use of any language that has been compiled to the byte code, most of them are written in Solidity.
The climate in the cryptocurrency market is moving towards summer; however, there continue to be remnants of the winter effect in the market. The overall bear market is not related to a decline in the fundamental trends, but it is due to notable technical flaws. The price of Bitcoin and Ethereum can further go down due to sentimental or negative news.