Over the course of the past 24 hours, the world’s second largest cryptocurrency by total market capitalization stooped to a 16-month low of $167.71 before starting its slow economic ascent once again. At press time, Ethereum is trading at $190.54.
Technical Outlook for ETH
As things stand, Ether seems to be in the midst of a bear run that does not appear to be going away anytime soon. For starters, the premier crypto asset touched a 52-week low yesterday, thus entering the “deep oversold territory”. While a pullback from this current situation is still possible, the future forecast for the currency appears to be bleak, to say the least.
Additionally, it is worth mentioning that the ETH/USD pair can potentially slide under the $140 mark if the alt-coin dips below the current support line.
Massive ICO Sell-Off Continues
In the recent past, Ether’s market reputation, as well as its value, have taken a substantial beating— with the latter falling by 20% within the past week. As reported by Cryptomode earlier, this decline in performance is largely being attributed to a massive ICO selloff, wherein many projects have liquidated their cryptocurrency holdings in order to procure “safer” fiat positions.
It is widely being reported all through the internet that a total of 153,000 ETH ($30 million approximately) have been dumped by a number of cryptocurrency projects within the past 7 days— thus triggering this latest financial bloodbath.
As investors scamper around, trying to find ways to minimize their losses, many well-respected financial analysts, including Allianz Executive, Mohamed El-Erian and Ethereum co-founder Joseph Lubin, continue to see “immense potential in the crypto sector”.
Discussing this latest monetary swing in the digital asset market, Lubin disagreed with Vitalik Buterin’s earlier comments regarding the blockchain industry having reached its ‘ceiling’ by saying:
“Vitalik is brilliant, but I would have to disagree with him on that. This is a technology that’s going to impact how economic, social and political systems are built over the next few decades. So we’re really just at the start of this. There will be so much evolution.”
Similarly, El-Erian too echoed some of Lubin’s sentiments and noted:
“Crypto is not dead, and certainly the underlying technology is not dead. We’re going to see more widespread adoption, by both the private and public sector, of the blockchain technology and related technologies.”
After the total market cap of the alt-asset sector dropped to an annual low of $191 Bln on September 9, the overall value of this digital space has somewhat increased over the past couple of days, closing at $195.08 Bln on September 13.