The recent cryptocurrency market crash had a big impact on the overall market cap, which lost around 150 billion within 24 hours. This comes after an anticipated Tweet from Elon Musk disowning Bitcoin. In turn, Ethereum crashes more than 13%. What drove this specific crash and what will happen to Ethereum prices?
Ethereum Crash – A Heavy Retracement
Prior to that current crash, Ether was going up on a steady and solid uptrend, coupled with good technicals and fundamentals. In figure 1, we can clearly see a that black uptrend line. It all started when prices went lower than that uptrend line and failed to gain the momentum upwards.
Prices in fact fell all the way from a high of USD 1,800 al the way to the USD 1,440 price level, which in fact represent a VERY IMPORTANT area. In figure 2, we can see how this importance is apparent, and how it previously represented a strong support and resistance areas for more than 5 times already, in a span of 1 month.
The Importance of ZOOMING OUT
Looking back at figures 1 and 2, one cannot but enter a FUD state of mind and start selling everything. In fact, this is the main reason why most traders and investors lose money, and they get so emotional, that they fail to look at the bigger picture, and zoom out. Take a look at figure 3…Does this look like a downtrend? Does this portray Chaos? Not really. In fact, when prices have a similar behavior upwards, we deem it normal, but when the same thing happens downwards, it’s out-of-the-ordinary.
Stay Ahead, Stay Updated
Rudy Fares
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Please also note our Non-liability disclaimer.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Ethereum
Uniswap v3 L2 Integration – How To Trade On The Ethereum Scaling Optimism
Uniswap announced the alpha launch of it’s decentralized exchange on Optimism “Ethereum Scaling” L2 solution on July 13. The Optimism …
Media is STILL reporting about the Crypto Crash, while Cryptos UP 10%?
Let's talk about the overall crypto market and see how cryptos up 20% in the past 24 hours. Despite adjusting …
What Happened to Cryptos? BTC/ETH/BNB/XRP Analysis
In this article, we're going to give a quick overview of what happened to cryptos, specifically Bitcoin, Ether, Binance Coin, …
