Cryptocurrency Ethereum by Wednesday, September 12, remains under tremendous pressure. Today altcon traded at $169,57 and loses 8.4 percent “weight”. Sales in the virtual currency began on 2 September to 5 September, they acquired an avalanche character. Now Ethereum as cheap as in July 2017, said Dmitry Gurkovsky, senior analyst at RoboForex.
After the bitcoin broke the $185.00 per pair with the U.S. dollar, “bears” became more active. At the moment both visible bearish trend line is broken (at $190,00 and $170,00, respectively). This means that the sellers are determined and aimed at further sales, although it is recognized that Ethereum is very “oversold”.
Even if sales stop, Ethereum at the restoration prices will face serious obstacles about $185,00 and $190,00. This is due to the low volume of proposals close to these values. Now the cost of cryptocurrency is significantly below the 100-hour moving average.
Key support Ethereum goes for $165,00. Important resistance stands at $190,00. The MACD on the daily chart is in the negative zone and indicates sales. The Stochastic oscillator deepens the decline, approaching the critical region and amplifies the signal to sales.
The fundamental background for Ethereum while looks not in the best way. U.S. district court in Brooklyn (USA) recognized token-ICO securities in the sense that implies the context of the Federal criminal code. According to Reuters, it became one of the nuances in the businessman Maxim Zaslavsky, who is accused by the Commission on securities and exchange Commission (SEC) fraud. Against this background, the cost of Ethereum “collapsed” to a local minima.
Another blow to Ethereum caused economist Nouriel Roubini (Nouriel Roubini). In his opinion, the platform Ethereum almost nobody uses. Roubini believes that Ethereum does not cope with the competition with decentralized applications, so its price falls almost continuously.
Roubini says not entirely surprised “collapse” Ethereum. It is estimated that 99% of all transactions are still in centralized exchanges, while the remaining percent is too little in order to bring cryptocurrency to the market stimulus to growth.
Earlier the founder of Ethereum Vitalik Buterin talked about his doubts in relation to the dynamic growth rates of virtual currencies. In his opinion, the price of the digital currency will no longer grow rapidly and infinitely, because the community has moved to a new stage of development.
Forecasts financial markets are private opinion of their authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results that can occur when using trade recommendations submitted reviews.