Ethereum [ETH] has plummeted below the $300 mark for the first time this year, wiping out as much as $2.5 billion in its market cap. Ethereum [ETH] saw a sudden slump around 1500 GMT on Monday, leaving many to wonder what caused the abrupt sell-off.
In the last week alone, the virtual currency had declined close to 30 percent in value. Though the cryptocurrency market has been battling intense selling pressures over the last few days, this particular digital currency seems to be among the coins faring the worst.
The coin has dropped to as low as $288.7 and is struggling to rise higher. The crypto had initially found support at $314.2, after which it exhibited a brief consolidation phase.
However, in what appears to be a disproportionate sell-off, ETH dropped below $300. At the time of writing, the digital asset was trading well below the current resistance level, which can be traced at $319.5, and is showing no signs of recovery.
The MACD indicated that ETH was trading in bearish territory while the 100 EMA line showed that the coin was in a downtrend. Ethereum has been in a downtrend since the beginning of the month.
The significant trading range was found to be within $284.3-$323.6. As of 1914 GMT, the coin had sunk nearly 10 percent against the U.S. dollar to trade at $290.5.
Where will Ethereum [ETH] go from here?
Currently, Ethereum [ETH] is ranked as the second most valuable cryptocurrency – second only to Bitcoin [BTC – with a market cap of $29.42 billion, data from CoinMarketCap showed.
The last time the coin traded below $300 was in November last year, before Bitcoin’s [BTC] price suddenly surged to nearly $20,000. The resulting bear market propelled Ethereum [ETH] to as high as $1,432.9 early this year.
But many in the cryptocurrency community believe that the coin could still scale higher, as most price forecasts for the coin seem fairly optimistic.
According to Smartereum, experts still believe that the coin could reach as high $2,500 by the end of the year. Many expect the crypto to touch $ 14,000 by the end of next year, and it could reach nearly $31,000 by the end of 2020.
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