Tanya Abrosimova
Independent Analyst
- Ethereum smashed below critical support, more downside in store.
- Coinbase announcement of ERC20 tokens support goes unnoticed.
Ethereum has dropped below $500.00 threshold, and now the price is moving quickly towards this year low registered at $453.00. The downside momentum is gaining traction amid negative market sentiments triggered by Twitter's decision to ban cryptocurrency and ICO related ads.
ETH may be more sensitive to the news as most of the ICO projects are based on Ethereum blockchain. It means that investors use Ether to buy new tokens, which increases the trading volume and liquidity of the cryptocurrency.
Meanwhile, Coinbase, the largest US cryptocurrency trading platform, announced support for the tokens based on ERC20 technical standard, such as EOS, Qtum, OmiseGo, Bancor and many more. Anyway, traders turned a deaf ear to the news that is considered to be positive for ETH.
“This paves the way for supporting ERC20 assets across Coinbase products in the future, though we aren’t announcing support for any specific assets or features at this time,” the official statement said.
Ethereum technical picture
ETH/USD touched $459 low during Asian hours. The downside momentum is very strong after the price smashed local support level at $470 with March 18 low $454 is now under threat. If it is broken, the coin will continue the downside towards $420, which is the lowest. On the upside, ETH/USD needs to get back above $500 to reduce immediate selling pressure with the ultimate bullish goal set at $570 (61.8% Fibo).
ETH/USD, the daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Can TRX trigger 30% breakout rally after multiple rejections?
TRON (TRX) price is attempting to overcome a resistance level for the third time this year. Another failure could prove costly for TRX holders, but a breakout could trigger a massive uptrend.
This short-term Bitcoin holder indicator forecasts another rally for BTC
Bitcoin price currently trades at $26,242 with dampened volatility. But things could change quickly, as indicated by these on-chain metrics that track the behavior of BTC holders.
Litecoin price is failing recovery as Whales pull back to December 2020 lows
Litecoin price has been unable to flip the 50-day EMA into a support floor since August began. The LTC whales, which command nearly 12% of the entire circulating supply, currently have been subdued.
Members of US FSC urge SEC Chair Gensler to immediately approve spot Bitcoin ETFs
United States House Financial Services Committee members sent out a letter to Gary Gensler addressing the spot Bitcoin ETFs. The letter called the SEC’s standards of denial of spot ETFs “inconsistent and discriminatory”.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.