{"id":113858,"date":"2021-02-22T17:17:01","date_gmt":"2021-02-22T17:17:01","guid":{"rendered":"https:\/\/precoinnews.com\/?p=113858"},"modified":"2021-02-22T17:17:01","modified_gmt":"2021-02-22T17:17:01","slug":"ethereum-eth-usd-falls-26-from-historic-high-whats-next","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/ethereum-eth-usd-falls-26-from-historic-high-whats-next\/","title":{"rendered":"Ethereum (ETH\/USD) Falls 26% From Historic High; What's Next?"},"content":{"rendered":"
Ethereum fell Monday in sync with the cryptocurrency market’s other top assets, including Bitcoin, Binance Coin, Polkadot, and Cardano.<\/p>\n
The second-largest cryptocurrency touched a record high of $2,041 during the weekend session that prompted daytraders to secure their profits. That led to a considerably larger sell-off throughout the weekend and Monday session, taking the ETH\/USD exchange rate lower by as much as 26.11 percent to $1,508.<\/p>\n
<\/p>\n
Ethereum slips amid broader crypto market sell-off. Source: ETHUSD on TradingView.com<\/p>\n
Elsewhere in the cryptocurrency market, almost every high-cap asset suffered major intraday losses.<\/p>\n
Bitcoin, the flagship digital asset having an extremely high positive correlation with Ethereum, plunged up to 19.99 percent from its session peak above $58,000. Likewise, Binance Coin, which notched closed the previous weekly session 171 percent high, dropped by 44 percent on Monday.<\/p>\n
On the whole, the cryptocurrency market wiped off $149 billion off its valuation.<\/p>\n
Bulls were able to offer support as Ethereum continued its plunge into the US session Monday. So it appears, they capped the cryptocurrency from falling below its 50-day simple moving average (the blue wave). The ETH\/USD rate fell towards it briefly before pulling itself back upward by 13 percent.<\/p>\n
Meanwhile, the bounce-back attempt took the pair close to another support wave (the green one) called the 20-day exponential moving average.<\/p>\n
Both the curves have limited Ethereum’s downside corrections in the past. In January, traders attempted to break the 20-EMA about nine times—and each attempt took the ETH\/USD rates to a fresh high. Meanwhile, any slipover below the 20-EMA had bulls treat the 50-SMA as support.<\/p>\n
Meanwhile, Teddy Cleps, an independent market analyst, noted that the ETH\/USD rates could still achieve a new all-time high, providing it maintains support above a so-called cloud price floor.<\/p>\n
<\/p>\n
Ethereum eyes $5,000, as per Teddy Cleps. Source: ETHUSD on TradingView.com<\/p>\n
\n“Ethereum getting squeezed between $2,000 and the cloud,” Mr. Cleps said. “[The] same exact price action that we had a few weeks back, when price was getting squeezed between the cloud and the 2017 all time high. Have patience, $5,000 is coming.”<\/p>\n