Ethereum is currently trading at its lowest level since September 30 following a dramatic 12.62% move to the downside over the past 24-hours.
At the time of writing, Ethereum was valued at $3,376 – a far cry from Q4 of 2021 when it rose to a record high of $4,854.
The drop in price was caused by a number of variables, notably an unhealthy balance of open interest and leveraged long positions which were forced to close or liquidate on the wick to $3,300.
Bitcoin also fell from its perch, dropping to $42,500 after losing the critical level of support at $45,000.
Moving forwards, the entire cryptocurrency market looks poised for downside price action, with Ethereum looking like it will test the $2,875 and $2,602 levels of support.
However, there is also a possibility that this move is the beginning of a gruelling bear market, which could see Ethereum’s price drop to as low as $1,000 over the next 12 to 18 months.
In order to regain a bullish posture, Ethereum needs to trade above $3,900 with a daily candle close.
To purchase Ethereum using Coin Rivet’s bespoke platform, please sign up here.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
More Ethereum news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.