As the cryptocurrency market continues its downward trend following a correction from last weeks rally, Ethereum (ETH) has lost a further seven percent today.
Earlier in the week, it looked possible that Ethereum would hold its price above the significant $250 level but a huge sell-off late last night (UTC) has caused the price to drop to below $240. At its lowest point, ETH touched on $231 but has since managed to regain some ground.
So where to from here?
The ETH/USD trading pair could be consolidating ahead of an even larger rally than that which we saw last week. The majority of indicators are neutral so it’s unlikely we’ll see any more excessive losses but may also mean the market will trade sideways for a while. The ETH/BTC pair is equally as neutral with an even split between bearish and bullish indicators.
Many analysts have predicted that Bitcoin (BTC) has moved into a period of consolidation and accumulation so its quite possible Ethereum will do the same. The 50-day simple moving average (SMA50) support level at $248 was breached this morning and now the 100-day simple moving average acts as resistance above $250.
Market Sentiment and Ongoing Developments
Yesterday saw the publication of the Ethereum Spring 2019 update from the Ethereum Foundation, a quarterly news release that covers developments of the network. The update covers several new partnerships that Ethereum has entered into with big players in the blockchain industry, including Nimbus, Sigma Prime, and Prysm. These companies have all begun testing their applications and operations on the new Ethereum testnet which is planned to migrate over to the mainnet soon.
The document also covers a range of technical additions and developments on the Ethereum blockchain such as transitionary protocol ETH 1.x and improvements to the zero-knowledge proofs protocol ZK-rollup.
While we may still see further losses for the price of Ethereum over the coming days its likely that this continued work by the Ethereum team will ensure further gains in the next few months.