ETH ACCELERATES DOWNWARD MOMENTUM AS RALLY FADES
In the first week of September, the price of ETH fell sharply from $275 to a low of $205. It continued to decline falling to $157 during the second week of the month. Since then, the price moved higher and reached a high of $243. Today, the ETH/USD pair is trading at 204.
The upward and downward movement in ETH was in line with other cryptocurrencies. According to CoinMarketCap, the top 100 cryptocurrencies have a market capitalization of more than $209 billion. This is significantly lower than the $800 billion high in early January.
The recent movements in ETH has largely been attributed to technical traders who believed that the price was deeply oversold. This is because there has not been any major news this month. The biggest news was on the relevance and value of the cryptocurrency after a trending article by Tech Crunch.
This week, the SEC announced that it is closely monitoring the cryptocurrencies industry, especially Initial Coin Offerings (ICOs). While there are no strict regulations on cryptocurrencies in the US, the SEC announced that it closely monitors scams associated with the industry. A few months ago, the agency went as far as creating a fake ICO website, complete with a whitepaper. This was a clear illustration about how easy it is to lose money in a fake ICO. The SEC also asked for more time before making a decision regarding ETFs.
Yesterday, the ETH/USD pair fell below the important support shown below. It then reached an intraday low of 197. The current price is below the 28 and 14-day EMA. It is also in the fourth phase of the Elliot Wave pattern. As the downward momentum continues, there is a likelihood that the pair will continue to move lower.