Ethereum [ETH] loses over $1 billion in market value as bears make a comeback
Ethereum [ETH] cannot seem to catch a break. After a bearish slump last week, followed by a brief recovery that many now view as a dead cat bounce, Ethereum [ETH] has yet again been dragged down by intense selling pressures.
The altcoin has managed to drop to its lowest in close to a week. But more importantly, Tuesday’s trading session saw nearly 5 percent of the coin’s market cap wiped out from till the time of writing. That translates to $1.01 billion at current prices.
Now, most major altcoins are trading in the red, though the trigger behind the broader downward movement is unclear.
Many in the crypto community have attributed the sudden slump in Ethereum’s prices to initial coin offerings (ICOs) selling off their tokens amid fears of a prolonged bear market.
According to a recent study by TrustNodes, ICOs have sold three times the amount of ETH in the last month or so than the amount sold in August.
Vijay Boyapati, founder of deals platform Dealupa, believes that the ICO market is now largely dead. “In a bear market companies will want to dump their ETH as fast as possible, hoping not to be last in line,” he explained.
Recently, Stellar technical advisor Jeremy Rubin stated that ETH will likely become worthless in the future, but the Ethereum network will end up succeeding “wildly”.
This led to Vitalik Buterin, Ethereum’s co-founder, admitting that the collapse of ETH was inevitable for now, unless changes were made to the underlying ecosystem.
The virtual currency breached a key support level, which can be traced at $216.4. The coin continued to post significant losses, slumping to as low as $192.3. Currently, the crypto is exhibiting a brief consolidation phase. ETH has found support at $194.5, and is attempting is climb higher.
At the time of writing, the MACD showed that the token was trading with bearish momentum. The 100 EMA line indicated that ETH was in a downtrend. The hourly RSI indicator is at 32, meaning that the coin is currently being oversold. The crypto is exhibiting a significant trading range of $193.9-$198.8. As of 0532 GMT, the digital asset slid 9.9 percent against the U.S. dollar to trade at $198.3.
The coin had dropped close to 7 percent against BTC at the time of writing. At present, one ETH is equivalent to around 0.0315 BTC.
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