Wednesday, January 20, 2021

Ethereum drops below $ 600 as XRP debacle wreaks havoc on altcoins – Cointelegraph

XRP has shown massive weakness as the cryptocurrency is sued by the SEC. Its price dropped significantly from $ 0.65 to $ 0.21 in four days, a crash of 67%.

Meanwhile, other altcoins have also corrected significantly in the past 24 hours, with investors likely concerned that XRP may not be the only coin on the SEC’s radar.


Ether (ETH) fell 14% on December 24, then rebounded to $ 550. While Chainlink corrected 38% to a recent low of $ 8. Sushiswap (SUSHI) saw the biggest fix and the flash crash drop from $ 2.75 to $ 1.10 – a 61% crash.

The question, then, is whether the XRP debacle will continue to hurt the altcoin market in the near term. Let’s take a look at the technicalities to identify areas of current support and resistance.

Ether seeks new low after recent drop

ETH / USD 1 week chart. Source: TradingView

The weekly chart for Ether looked awesome and hasn’t changed since the recent dropdown. In this regard, construction is still bullish and rising.

The recent high of $ 675 confirms a new high, after which a higher low will ensure a continuation of the bull market for Ether. This higher low will likely occur in the area around $ 450. This is the area of ​​previous resistance eager to turn around for support before the chase occurs.

However, to have such a correction, Bitcoin (BTC) would have to see a severe correction. Otherwise, this scenario is unlikely to occur. As long as Ether stays above $ 450, a further rally may push Ether towards $ 1,200-1,300 next year.

The resistance of $ 620 is the next crucial level

ETH / USD 1 day chart. Source: TradingView

Ether’s daily chart looks less bullish as it has crossed the crucial $ 620 threshold, which should have been crossed for an immediate bullish continuation. Going above $ 620 would practically guarantee a new high price for ETH.

However, the previous resistance zone and rejection at $ 620 suggests that a bigger drop is likely in the near term.