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.

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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.