POSITIVE CRYPTO NEWS DOES LITTLE TO SAVE ETHEREUM
The price of Ethereum declined overnight despite yesterday’s news that Andreessen Horowitz – one of the biggest venture capitalists in the world – had started a crypto fund. Horowitz is one of the most storied investors in Silicon Valley with his investment interests associated with companies like Facebook, Square, Cadre, and TransferWise among others. A few months ago, this news would have led to more demand on Ethereum and other related cryptocurrencies.
In addition to this, Facebook reversed its earlier policy on cryptocurrency-related advertisements. In an updated policy, Facebook announced that it would start accepting adverts from pre-approved cryptocurrency companies. However, according to Bloomberg, ICOs and other cryptocurrency startups had already found a way of advertising their products on social media using online influencers.
The ETH/USD pair is currently trading at $430, which is the lowest level since April this year. The price is slightly lower than the 200-day moving average. The current decline started in early May when the pair reached a high of $795. Since then, the pair has struggled to find a floor. It has continued to reach new lows every day and its attempt to recover have found a resistance. The pair’s RSI is currently at 27. During the decline, the oversold levels have done little to accelerate the recovery. Therefore, there is a high likelihood that the pair will continue falling, and possibly reach a low of $350 in the next few days.