ICO projects tank Ethereum; ETH/USD may return to $100
- ETH/USD is down 9% on a daily basis.
- Selling by ICO projects increases the downside pressure on the market.
Ethereum is changing hands at $116.43, consolidating losses after a strong sell-off in the end on Thursday. The coin has lost nearly 9% in recent 24 hours despite a subtle recovery during the Asian session. Ethereum's market value is registered at $12.1B, while an average daily trading volume amounts to 2.5B.
ICO projects drive the market lower
ICO project cashed out over 433k ETH coins in December, which is the highest amount on record. Moreover, according to the research conducted by Diar company, the December the sell-off exceeded the number of coins disposed of during the previous two months combined. Currently, there a slightly over 3 million ETH coins on companies' accounts. The most active sellers include Filecoin, SingularDTV, and Kyber.
Ethereum's technical picture
On the 4-hour chart, ETH/USD broke below SMA50 amid global selling pressure. This development supported the bearish sentiments. While a confluence of SMA200 and SMA100 at $107.42 and $106.63 respectively are likely to stop the decline, a sustainable move lower will expose psychological $100.00. The Relative Strength Index (RSI) is flat, while the Momentum indicator points downward, signaling the market indecision.
On the upside, the local resistance is created by the above said SMA50 at $124.40, though we will need to pass $120.00 barrier first. Once moth levels are out of the way, the recovery may be extended towards $130.00
ETH/USD, the 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
