• 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin market update: BCH/USD sellers catalyze the breakdown under $220

The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session. From an opening price of $226.97, BCH ascended to an intraday high of $227.76. 

More Bitcoin Cash News

IOTA price analysis: IOT/USD loses ground, moves within the recent channel

IOTA, the 17th largest digital asset with the current market value of $745 million, has been moving in a tight range recently. The coin has lost 1.8% of its value on a day-to-day basis amid global sell-off on the cryptocurrency market.

More IOTA News

Ethereum price prediction: ETH/USD collapses below $170.00 – Confluence Detector

ETH/USD surrounded $170.00 support amid massive sell-off on the global cryptocurrency market. ETH, the second digital coin has lost over 4% of its value in recent 24 hours to trade at $167.00 by press time.

More Ethereum News

Facebook’s Libra could be regulated by the SEC: The US Congress draft bill reveals

Facebook is yet to find a regulatory breakthrough for its proposed digital project, Libra. However, if the United States Congress goes ahead with the proposal to draft a bill describing stablecoins, Libra could quickly fall under the wings of the Securities and Exchange Commission.

More Libra News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Nothing to crow about

Bitcoin (BTC) attempted a recovery above $8,400 and resumed the decline into the end of the week.

Read the weekly forecast

BTC

ETH

XRP