- Ethereum (ETH) nears a death cross formation on the daily candle charts as price drops below $230 USD.
- Fundamental factors remain bleak for the second largest cryptocurrency, is $200 on the horizon?
The market is falling hard as Bitcoin (BTC) slipped below $9,000 for the first time in a month leading to a market wide selloff, Ethereum (ETH) –the second largest crypto – losing 7% in the past day. Despite the developments in preparation of the launch of ETH 2.0 and a swelling DeFi market, ETH’s price is plummeting at a rapid pace, threatening a completion of a death cross pattern on the daily charts.
Ether currently trades at $230.37 USD, a strong push from intraday lows of $216 in the early trading hours in the Asian market.
ETH/USD drops 6.86% in a day as death cross looms
A look at the daily chart technical indicators signals a possible turn of the recently bullish market to a sour bearish one. The moving averages are converging towards a death cross – a strongly bearish technical indicator – which if completed may set the price towards the $200 key support level.
ETH/USD drops below key support level at $230 USD (Image: TradingView)
The daily volumes on the ETH/USD pair are on a spike in the last three days as the market began its downtrend. This signals the market bears are finally out of hibernation after a lengthy 2 month explosive period on crypto market. However, the returns on ETH are still pretty solid since the start of 2020 despite losing quarter its value over the past 72hours.
Can DeFi save the face of ETH?
Despite the sharp fall in the past few days,