Ethereum price analysis: ETH/USD rushing towards March 18 low despite Coinbase support for ERC20 tokens

  • 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

ETH/USD, the daily chart

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