Ethereum is currently trading at $ 3,420 after a devastating sell-off dropped its market cap by $ 75 billion in minutes.

The industry’s second largest asset has bounced back significantly from a low of $ 3,000, though the recent slump has compounded the number of declining results over the coming weeks and months.

While the cryptocurrency market was in a healthy position earlier in the week, it now appears to have topped locally due to a surge in leveraged positions that was not supported by sufficient spot volume.

Traders will be on the lower plateau now, with any sort of rally into the $ 3,600 region expected to sell short in light of yesterday’s events.

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TradingView’s ETHUSD chart

Support levels remain the same at $ 3,325 and $ 3,000, with key resistance points around $ 3,600 and $ 4,000.

As Ethereum starts closing the daily candles below the $ 3,000 mark, it will likely enter a medium-term downtrend, with the downside targets re-emerging at $ 2,450 and $ 2,170.

However, if it can recover on its own and close this week’s candle above $ 3,650, it would show a serious display of strength that would lead to predictions of a new all-time high before the year is over.

Much of that will also depend on Bitcoin, which is currently trading at $ 46,500 after being brutally rejected by the $ 53,000 resistance on Monday.

About Ethereum

Ethereum was launched on July 30, 2015 by Vitalik Buterin. He worked as a researcher and programmer at Bitcoin Magazine and first wrote a whitepaper in 2013 that described Ethereum.

Buterin had suggested that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language than he could not support his proposal.

More news and information about Ethereum

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As with any investment, it pays to do some homework before parting with your money. Cryptocurrency prices are volatile and rise and fall quickly. This page does not recommend any particular currency or whether or not you should invest.

You may be interested in our range of cryptocurrency guides and the latest cryptocurrency news.

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