Ethereum is currently trading at $1,770 following a 8.9% move to the downside since Sunday’s high of $1,939.
The world’s second largest cryptocurrency by market cap has managed to find a natural level of support on the daily 21 exponential moving average.
A daily close below that level, which is sitting at $1,733, would indicate a period of continuation to the downside, with price targets emerging at $1,639 and $1,450.
However, a bounce from this region would form a crucial higher low from the sell-off in late February, which could trigger a notable bounce back into the $1,800 to $1,850 range.
Much of Ethereum’s price action is dictated by Bitcoin, which in itself has struggled this week after forming a new all-time high above $61,000 over the weekend.
Typically, when Bitcoin makes a major move in either direction, altcoins like Ethereum suffer as traders naturally liquidate more speculative assets into stablecoins.
If Bitcoin can begin to consolidate in the $55,000 to $57,000 range, Ethereum will likely experience a relief rally to $1,850.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
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.
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