What goes up must come down! After a month of spectacular gains, the cryptocurrency market has started the month of June in the red. Ethereum (ETH), Bitcoin (BTC) and Litecoin (LTC) all collapsed by around 10 percent as Asain markets opened this morning, taking almost $20 billion off the overall market value.
Ethereum looked poised to break through the significant $300 price level late last month but now flounders below $250. The price took a heavy dip from $259.12 to $239.89 at around midnight (UTC) last night, after which is managed to regain the $246 – $248 level that it is currently trading sideways in.
Ethereum breaking new ground with ongoing developments
The price dip flies in the face of groundbreaking new developments that are ongoing in the Ethereum community. Consulting firm EY (previously Ernst & Young) recently released a privacy toolset for Ethereum dramatically dubbed ‘Nightfall’. Ethereum developers have been working hard to improve privacy on the network, with co-founder Vitalik Buterin commenting recently on the growing importance of privacy within blockchain projects.
The Nightfall privacy toolset released by EY for the Ethereum ecosystem offers a method to complete private transactions on the network, something not previously available. It allows private transactions to be completed using both ERC-20 and ERC-721 tokens using smart contracts and the ZoKrates ‘zk-snarks’ toolkit.
While the development forms only a small part of the wider Etheruem ecosystem, it represents a step in the direction of getting the entire Ethereum core blockchain working in a private manner.
Ethereum (ETH) Price Analysis
An old chart on TradingView has recently resurfaced showing a striking similarity between current chart patterns and those leading up to the epic bull run of 2017. The chart reveals how Ethereum suffered a dip very much like the current one just a short time before surging up by multiple orders of magnitude.
Short-term technicals suggest further losses coming for ETH/USD, with the relative strength index (RSI) neutral at 53.36 and MACD bearish at 15.13. Long-term, however, Ethereum is still carrying upward momentum and it’s likely this dip will only be temporary.