- 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
BEST BROKERS TO TRADE CRYPTO
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.