By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
This morning, Friday, March 13th, the ETH is attempting to correct after a disastrous slump yesterday. It is generally trading at 119.40 USD. Last time, the ETH was so cheap in February 2019. The Ethereum is experiencing sales alongside with virtually the whole crypto market. Some cryptocurrencies have lately declined by 50%.
On D1, the declining wave tested the psychologically important support level of 100.00 USD. In the short term, the quotations may perform an ascending correction. However, after the pullback, the decline will continue, aiming at the long-term low of 80.86 USD and the post-correctional extension area of 138.2-161.8% Fibo (50.50-9.60 USD).
On H4, the quotations reached 89.98 USD and began a pullback. The Stochastic is preparing a Gold Cross in the oversold area, confirming the market determination to correct. The quotations grew to 23.6% Fibo but may rise to 38.2% (152.25 USD) и 50.0% (171.85 USD).
The ETH, alongside other cryptocurrencies, has been experiencing an avalanche of sales in the last 24 hours, its price falling by 42.7%. Anyway, all altcoins have found themselves under pressure, and the ETH chart looks very much like that of the BTC. The only difference is that with the ETH, things seem much worse.
It is very likely that large investors are leaving the ETH due to its growing volatility. What worsens the situation is the fact that no one knows the time of transition to the PoS protocols – such information could support the company and its token, but alas.
At the current of the crisis, cryptocurrencies have failed to become a “safe haven” for investors because last time the market gave way to the stream of those looking for a safe investment, and the prices slumped.
Among the news important for the ETH, we may name the decision of the Binance exchange to double the commission fee for the ETH withdrawal. As the main reason for such an action, the exchange named the overloading of the network. Logically enough, traders are not happy with the new rule. Many have noted that the fee is too high, and this is true. There is an opinion that the measure is temporary which now prevents many investors from leaving the platform.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.