Halfway through the week and the crypto markets continue to edge very cautiously higher. Bitcoin (BTC) begins at $4,040 and Ethereum (ETH) has hauled itself up to $138.50. But as soon as the US session gets going, it’s back down we go to $3,980 and $133.70 For once there appears to be an obvious catalyst.
Ethereum founder Vitalik Buterin said in an interview that ETH was losing its lead in the cryptocurrency market. He also admitted that losing a chunk of market share was “inevitable and unavoidable”. That’s certainly enough to put a little pressure on ETH and drag the broader market with it, which it shouldn’t really, as this was a very specific ETH comment and he is alluding to other coins becoming more prevalent. But crypto still sometimes follows a herd mentality and when one goes, they all follow.
ETH moved lower touching $132 before recovering to $134.50. BTC hit a low of $3,920 then bounced to $3,960 toward the end of the day. All of the major coins end down between 1 and 4%.
ETH definitely led yesterday’s broad market move lower and as you can see from the chart below, broke the $134.80 level identified as interim support. Since the low, ETH has bounced back to test that line at $134.80 but thus far remains below.
$127.42 now becomes the next major support level. It’s rare that someone connected to a project would be so brutally honest, but it does rather cast a dark cloud over the coin. The natural reaction would be to see investors reduce ETH holdings in favor of other major coins but for yesterday at least, the entire market was dragged lower.
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