Ethereum price analysis: ETH/USD broke below $500 despite positive comments from Ethereum co-founder
|- Joseph Lubin believes in the revolutionary nature of blockchain.
- More downside in store for ETH/USD if it fails to get back above $500.
ETH/USD broke below $500 threshold for the first time since April 17. This is an ominous sign, especially if the price fails to get back above this pivotal level during the upcoming trading day. The second popular digital coin is changing hands at $495, off Tuesday's low at $483. Current market capitalization is $49.9B and average trading volumes $1.9B.
The co-founder of Ethereum Joseph Lubin thinks that blockchain technology will be much more disruptive" than the dotcom bubble.
"If you look at the dotcom boom and bust, there were so many of the same issues back then. So much money invested, lots of money lost, lots of failing projects. And what happened was a profound global transformation in how we operate on the planet. There was a tremendous amount of creative destruction in the dotcom era that laid the foundation and taught all of us how to build an effective internet, an effective world wide web, and really transform society. I think that we will see dynamics like that in place in the blockchain space." he said speaking at MoneyConf in Dublin on Tuesday.
When answering the question about SEC tightened approach. he explained that the regulator is right to take actions against bad actors. However, he believes that scams don't threaten the blockchain and cryptocurrency industry.
ETH/USD, the technical picture
From the longer-term perspective, the coin is effectively capped by sloping 100-DMA, currently at $593. A sustainable movement above this level is needed to ensure extended recovery towards $652, which is 23.6% Fibo retracement. However, the recovery is very unlikely unless the price gets back above $500 as soon as possible. Otherwise, the selling pressure will increase and push ETH/USD towards $400 and to the ultimate bearish aim at this year lows ($364).
ETH/USD, the daily chart
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