Difficult Days Ahead for Ethereum?
After a miserable weekend, Ethereum dropped to trade around $200 mark, and may continue to fall throughout the rest of the week.
Ethereum had an impressive start to the year, besting Bitcoin in the percentage of its climb. But the crashing of global markets caused by the outbreak of the COVID-19 virus continues to be felt across the crypto sphere, with investors in Ethereum sharing concerns of whether bulls control the market, and hoping that the token will not fall beneath the next support level.
The decline suffered over the weekend caused the coin to drop $50. This downward trend has continued, having Ethereum trade as low as $188.
Market sentiment indicates that there are concerns that many cryptocurrencies will shed the gains they have achieved after an eventful start to 2020. This has inspired a market-wide selloff that caused Bitcoin to drop below $8,000, with a resistance barrier of $8,200. The combined market capitalization of all cryptocurrency also plummeted by a massive $38 billion.
Will Ethereum Recover?
If Ethereum is able to rebound it will face new resistance at 3 major prices: $208, $212 and $219. If it falls below the $185 support, it will likely suffer a sharp decline towards $165. There are many technical analyses that suggest, although ETH was pulled back up from $190 to the $200 mark by the bulls, the token will continue to face hurdles this week.
But is this a bad situation for investors? The current low prices of Ethereum would certainly be perceived by many, as an ideal time to buy. If so, it would make sense for the bulls to exercise patience just a little while longer.
The upcoming launch of Ethereum 2.0 is sure to influence market price quite dramatically. Originally planned for January this year, the release was put back and is now expected to be deployed in Q2 of 2020. The enhancement to the current model will introduce many technical improvements, providing a substantial upgrade to the network and implementing the long-awaited shift from Proof-of-Work to the Proof-of-Stake consensus.
When this upgrade is reflected in the trading charts, there may be a lot of smiling faces who are glad they bought the token around the $180 mark.