- Ethereum has suffered a strong rejection at daily highs due to fundamental news regarding BitMEX.
- On Thursday morning, the US CFTC announced that it was charging BitMEX for derivatives and anti-money laundering violations.
- Bitcoin fell in response to the news, dropping from $ 10,900 to $ 10,450 in an hour or two.
- Ethereum and other altcoins have plunged as well, leading to the ongoing correction.
- While this was notable for Bitcoin, the decline was also notable for Ethereum, as it meant it was again forming a rejection at a crucial level.
- Of course, the move was not triggered by technical aspects, but it shows that ETH is still trading below a crucial technical level.
Ethereum hits Do or Die level – and it just got rejected
Ethereum’s drop on Thursday came to a critical level for the cryptocurrency. A seller sharing the chart below just before the movement lower, showing that ETH was once again rubbing at a level of technical importance.
ETH’s inability to break through the level may suggest that the medium term trend is now bearish. This is due to the importance of the level to Ethereum’s price action over the past year: the October 2019 rally peaked at $ 365, where ETH just exceeded. Additionally, during August’s price action, two bearish reversals ended at this level.
Chart of ETH's price action over the past few months with an analysis by crypto trader CryptoHamster (@CryptoHamsterIO on Twitter). Chart from TradingView.com
The trader who shared the chart above is far from the first to point out the importance of Ethereum’s price action in the $ 365-375 region.
As previously reported by Bitcoinist, Michael Van De Poppe, an Amsterdam Stock Exchange trader who closely follows the crypto space, recently wrote about the chart below:
“Okay, this one is evolving upwards and that’s good. However, the crucial hurdle is around $ 366-375 to cross. If that breaks, $ ETH is ready for $ 415. Otherwise, I guess $ 280 is a probable possibility for further corrective moves in Q4. “
Chart of ETH's price action over the past few months with analysis by crypto analyst Michael Van De Poppe. Chart from TradingView.com
ETH2 Testnet fails
Despite the strength of the decentralized financial space, one of Ethereum’s main fundamental drivers, the launch of ETH2, has recently taken a heavy blow.
Spadina, a final test network for the launch of the first phase of ETH2 (“phase zero”), recently failed due to a few bugs in the code. This, some feared, could delay the launch of Ethereum’s critical upgrade, thus providing a reason to sell the cryptocurrency.
Featured Image from Shutterstock Price tags: ethusd, ethusdt, ethbtc Charts from TradingView.com Ethereum Is Running Up Against a Do or Die Resistance