Loading

wait a moment

Altcoins Suffer Steep Losses as Ethereum Returns to Sub-$200 Levels

bitcoin social trading

For the past two weeks, Ethereum has been mirroring Bitcoin with both coins consolidating on low volume and equal pressure from buyers and sellers in both. However, the 6% price drop which has occurred in Bitcoin which brought it from around $6660 to $6250 has had a worse impact on Ethereum.

Ethereum, the market-leading altcoin, has dropped from around $224 to just below $200. Ethereum is underperforming Bitcoin in this drop as it has done throughout the year with Bitcoin proving to be a better store of value. Bitcoin currently represents around 54% of the total cryptocurrency market capitalization, and its moves have had a big impact on the corresponding moves of altcoins.

The drop in Ethereum has been on significant volume, more than double the 20-period average daily volume. The prospects for Ethereum from here seem to rely on the performance of Bitcoin.

Ethereum Daily Chart – Source: Tradingview.com

The initial drop brought the Ethereum price to a low of $192. It has since started to retrace back up but may be experiencing some resistance at the $200 mark. The hourly RSI and MACD have started to increase showing the short-term momentum shifting to buyers. The main drop may be over, but for longer-term direction, traders should closely monitor the price action of Bitcoin.

Ethereum Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Ethereum underperforms Bitcoin in the most recent price drop and returns to sub-$200 levels.
  • Ethereum movements are dependent on market leader Bitcoin which represents around 54% of the total market cap.
  • Short-term momentum is shifting towards buyers, but traders should monitor Bitcoin price action for longer-term direction.
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

Altcoins Suffer Steep Losses as Ethereum Returns to Sub-$200 Levels was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.