Ethereum price weekly analysis 26 June: Market pressure sees Ether take a big hit
Ether is not immune from the significant downward pull dragging down most of the cryptocurrency market.
- Bears are controlling the market with Ether dropping 14% over the last week.
- The price is holding at around the US$450 market, which is around the 50-day SMA.
- Ether is caught up in a broader market plunge.
Like much of the market, Ether has taken a hammering over recent days. Even allowing for a relatively small rise of about US$27 yesterday, the market's second most valuable coin by market capitalisation plummeted from US$542 last Thursday to settle around the US$451 mark in trading today.
Most of those losses occurred over the weekend with the price tumbling precipitously late on Friday and throughout Saturday.
Overall, ETH has lost over 14% since this time last week with sellers boosting trading volumes. Interestingly, now that the price has settled around the US$450 level, 24-hour trading volumes have lifted to about US$4.5 billion from lows of about US$1.6 billion yesterday.
Most analysts, like those at NewsBTC agree that Ether is finding support at the US$450 level. However, if that level is broken then we can expect about another US$90 to be wiped from ETH's value.
Some further analysis by NewsBTC says that clearing the US$470 level and its 100-day simple moving average (SMA) is a struggle for Ether, suggesting the main force in the market is coming from bears holding the price down.
The 50- and 100-SMA for Ether are US$452 and US$464 respectively. But an extended sell-off, says FXStreet, will bring the US$440 and US$420 levels into play.
When you run your eye down the list of top 100 coins, there are very few green lights with almost every coin showing significant losses of up to 50% over the last week. Clearly, we are seeing a massive market correction in progress with no telling where the bottom will be. Whether we've reached levels that will see the buyers come out remains to be seen.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.