Ethereum (ETH) price has continued to fall after a dreadful weekend, which saw the price drop to around $198, wiping out last week’s gains. The cryptocurrency is currently trading slightly above the $200 support level and faces a nervy week in which it could drop as low as $170.
Ethereum Drops to $200 as Crypto Markets Crash
The coin has had a stellar year to date, having started the year at $130. It reached $280 in mid-February, outperforming even Bitcoin (BTC) in its percentage climb. However, there has been a market-wide sell-off as of late, with Bitcoin falling below the $8,000 level in the last week of February. ETH shed $50 and dropped to $220 and is continuing to suffer.
Following the massive market-wide sell-off, the combined market capitalization of cryptos has dropped from $264 billion to around $226 billion. This is because of growing market concerns that coins will lose most of the gains they have accumulated since the beginning of the year. Since cryptocurrencies are volatile assets, it is important to note that a 20% move in either direction is something to expect from a near-term perspective.
Cryptocurrencies Impacted by Crashing of Global Markets
In the event that ETH rebounds from its current level, it could likely test the $219 resistance level in the short-term, although this will need a surge in volume as a catalyst. The most important thing to note is that the decline in crypto prices cannot be compared to what global markets are experiencing. However, for Ethereum, the concern is whether bulls are in control of the markets or whether the crashing of global markets will continue to impact the coin.
This year, Ethereum has made some progress, and the launch of ETH2.0 has been boosted by the rollout of technical improvements. ETH2.0 will be a significant upgrade for the network, as it will add new features and shift to a Proof of Stake consensus.
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Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.