Ethereum (ETH) Drops 10%, Finds Support At $100 for Third Time – Can It Maintain?
Ethereum has managed to hold support above $100 for the third time in two weeks since falling by over 50% in mid-November.
Despite being one 2018’s most popular and best-performing blockchains for ICO creation, Ethereum has been one of the worst hit during the recent cryptocurrency market crash. When prices began to slide heavily in late July this year many ICO projects struggled to continue operations. As a result, several projects that were built on Ethereum’s ERC-20 standard went into liquidation and dragged down Ethereum’s value with them.
After only barely managing to maintain support above $200 for the majority of September and October, Ethereum eventually gave into strong selling pressure in November. It quickly fell by 50 percent, briefly breaching the $100 support level for the first time in over a year on November 25th and then again on the 27th. It held on tight though and managed to stay above $110 for most of early December before testing $100 again today.
With prices now at their lowest levels since mid-2017, many believe ‘whales’ are using the opportunity to buy up large quantities of ETH. A report from the weekly crypto research publication Diar indicates that 2018 has seen whales accumulate more ETH than any previous year, with some increasing their holdings by up to 80 percent. While the overall value of the market has dropped significantly, the net balance of deposits and withdrawals is actually up by $1 billion.
Most technical analysis commonly predicts that if an asset manages to stay above a critical level three times in a row then support is strong and a possible rebound is on the horizon. However, with the majority of other crypto assets in decline, a breakout below $100 is just as likely at present. Over the weekend, Bitcoin (BTC) once again breached the critical $4,000 level and then dropped a further 6 percent today before finding support at $3,700.