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.
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.
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.
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