As all cryptocurrencies remain buried under a fresh layer of bearish market pressure, it will be interesting to see how things move ahead in the coming weeks. For Ethereum, the double-digit value is coming a lot closer over the past few days. A bit more negative price pressure will crumble the support at $100, which is a pretty interesting development, although not necessarily for the right reasons.
Ethereum Price Support Runs out of Gas
Although it has been coming for quite some time now, the Ethereum price is genuinely on the verge of dropping back into the double-digit range. It is a development most holders and speculators would rather not see materialize, but there is very little reason to expect anything different in the coming weeks. As the onslaught continues, this pressure will only intensify further, and there is no telling where the bottom will be.
Over the past 24 hours, the Ethereum price lost another 6.3% in USD value and 4.5% over Bitcoin. As long as altcoins do not inch ahead in the BTC ratio, things will not improve anytime soon. For Ethereum, it seems this is a battle that simply can’t be won. As such, a drop below $100 would require just another 2% decline at this time. It is very likely to happen pretty soon, although one never knows if that will effectively be the bottom.
There is some positive news which might keep the Ethereum price in the triple-digit range for a while longer. Bitwise has seemingly confirmed they will introduce two new liquid funds. As one would come to expect, there will be a strong focus on Bitcoin, although the company isn’t giving up on Ethereum just yet either. Whether or not that is the smart decision, is a different matter altogether.
On the other hand, one has to wonder if there is a future for Ethereum’s technology other than the creation of initial coin offerings. Although the smart contracts can be used for thousands of purposes, it is evident ICOs are the main trend to keep an eye on. As the SEC keeps cracking down on such projects, it seems to be a matter of time until either new use cases are discovered, or Ethereum moves away from consumer-oriented applications and services altogether.
When looking at the current market trend from a technical analysis perspective, it seems to be a matter of time until Ethereum drops below $100. There is genuinely nothing supporting the current level whatsoever, and the bearish pressure will not relent anytime soon either. A dip below $100 may only be the beginning of Ethereum’s troubles in the price department, for all one knows. Even so, all it takes is one massive Bitcoin bounce to pull everything else in the green accordingly.
— IMPOSSIBLE ARTIFACTS (@impossibleartif) December 6, 2018
The big question is how traders and speculators will respond once the Ethereum price drops below $100. Further market chaos is not entirely unexpected, although it seems unlikely the price will drop much lower than $99 during the initial hours. If no market reversal kicks in, a slow and steady bleed to $80 or lower is very likely to materialize in the coming weeks and months. Not the scenario people envisioned in January of 2018, that much is certain.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.