• ETH/USD is falling like a stone, down over 13% on a daily basis.
  • Miners and ICO projects are selling coins to cover expenses.

Ethereum changing hands at $146.14, which is the lowest level since July 2017. The coin with the market value of $15B slipped from the second place in cryptocurrency rating amid growing bearish sentiments. ETH/USD lost 16% on Monday and may extend the decline on Tuesday unless new buyers join the market to purchase more coins while they are cheap. 

Ethereum lost nearly one-third of its value in one a week, while a hash rate in Ethereum network is down to 236 TH/s, which is the lowest level since February. The current hash rate situation means that miners are suffering big losses as they have to pay for electricity, equipment, and rent amid declining profits from each mined coin. This may lead to unhappy consequences for the market as miners have to sell their coins to cover expenses. 

ICO projects may also drag the price down as companies are likely to cash out the funds they raised during crowdfunding.

A report coming at the behest of Diar, a daily crypto newsletter, also found strong bearish catalysts that point to an extended selling action in the Ethereum market. The study based its bearish prediction on the possibility of the leading ICO projects liquidating their ETH holdings.

According to Larry Cermak from Diar, at current prices, some projects would become unprofitable and continue selling ETH to cover expenses. 

“Obviously, a lot of the ICO companies will continue selling ETH to cover operating expenses and to fund their businesses,” Cermak said in a tweet. “It’s important to realize that the majority of these projects isn’t generating any revenue. And most likely never will,” he commented.

Ethereum's technical picture

On the intraday level, a sustainable move above $170.00 is needed to mitigate the bearish setup. However, this looks very unlikely under current market conditions as the decline is gaining traction. While little in terms of support levels under the current price, ETH/USD may easily reach $130 once $140 handle is taken out.  Daily RSI stays flat in the oversold territory.

ETH/USD, the daily chart

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin may surpass $9,000 as early as this weekend

Bitcoin bulls hit a brick wall on the approach to $9,000. The first digital coin settled at $8,960 after several unsuccessful attempts to pass this barrier.  At the time of writing, BTC/USD is up 2.5% since the beginning of the day.

More Bitcoin News

Bitcoin closes in on $9,000, IOTA and Ethereum Classic bulls unstoppable

Sounds of happiness and cheer fill the cryptocurrency space on Friday following an impressive turnaround from the drab start during the Asian session, to incredible upward movement in the European session. 

More Cryptocurrencies News

DASH has low chance to be classified as a security

DASH, now the 13th largest digital asset with the current market value of $1.15 billion, topped at $144.75 on January 15 and retreated to $124.00 by the time of writing.

More Dash News

Ethereum Price Analysis: ETH/USD bulls in tactical retreat after a failure at $170.00

Ethereum, the second-largest digital asset with the current market value of $18 billion, has been gaining ground after a short-lived retreat on Thursday. The coin has gained over 3% on a day-to-day basis and 2.8% since the beginning of Friday. 

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls piggy-back on alttcoins rally

This week was marked by a strong altcoins rally on the cryptocurrency markets. Bitcoin SV (BSV) and Dash experienced the sharpest price increase over 100% in recent seven days...

Read the weekly forecast

BTC

ETH

XRP