Ethereum Revisits Key Support Amid Negative Cryptocurrency Sentiment

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Ethereum Revisits Key Support Amid Negative Cryptocurrency Sentiment

Ethereum Analysis: ETH, along with its buddies, Bitcoin, Litecoin and other major cryptocurrencies had a bad Tuesday as they all revisited their respective key support levels from January’s bloodbath. Here is a look at what’s been going on in the market, and Ethereum’s price action. 

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Why Are Cryptocurrencies Falling?

Besides market sentiment, there are several things going on in the cryptocurrency market that seem to be adding to investor fears.

For example, on Tuesday, the SEC announced that it would be freezing the assets of Dallas-based AriseBank. It will also be stopping its ICO (Initial Coin Offering.)

Also on Tuesday, Facebook announced that it would be banning all advertising related to cryptocurrencies.

The overall stock market correction hasn’t helped the sentiment either.

Any Positive Coverage for Ethereum Analysis?

Yup. There are still some positive things to look into, especially for Ethereum.

Last week, a cryptocurrency rating agency released a report that assigned grades to dozens of cryptocurrencies. They analyzed the digital assets based on a number of metrics, such as risk, technological innovation, and other fundamentals. In that report, their Ethereum analysis received a higher grade than Bitcoin and Ripple. Of course, whether you believe this report or not, is up to you.

In other news, Ethereum Capital, a newly-formed technology company focused on becoming the central business and investment hub for the Ethereum ecosystem, had a major announcement on Tuesday. They announced they’ll be raising $50 million private placement offering backed by leading management team and investors. Once the funding is completed on Feb. 16, the company will invest the funds in both Ethereum tokens and blockchain startups.

ETH/USD Price Action

On the daily chart, ETH/USD is approaching the key pivot level of $990 while remaining above the Ichimoku cloud. The next support level is at 50% Fibonacci retracement level of $856.

If the key support of $990 holds, we could see temporary gains towards resistance levels of $1,152 and all-time high levels of $1,412 in the medium term.

However, as long as the future cloud of Ichimoku and its other moving averages and remain flat, we could expect the consolidation to continue between $856 and $1,412.