Ethereum is currently trading back below $3,100 following a gruelling sell-off across the entire cryptocurrency market overnight.
The industry’s second-largest asset has enjoyed a fruitful month of price action, rallying from $1,700 in July to a monthly high in August of $3,390.
However, the tide appears to have turned in the short-term, with Ethereum failing to close a daily candle above $3,320 following a string of stubborn attempts.
Key levels of support remain at $3,000 and $2,880, although it must be noted that if Ethereum can muster some strength from its current region, it could well have enough fuel to break the monthly high given the number of short positions that can be squeezed.
Much of it will depend on the trajectory of Bitcoin, which is trading at $47,000 after another miserable stab at the psychological level of resistance at $50,000.
If Bitcoin can break $50,000 on convincing volume it would indicate a clear change in behaviour, which would reinforce the theory that a “double bubble” scenario may come into play like in 2013.
This pattern was established in 2013 when the Bitcoin bull market formed two major tops before entering an inevitable bear market.
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About Ethereum
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
More Ethereum news and information
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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.
