Ethereum Price Bulls Resulted in Defending Key Support
Bitcoin (BTC), Ethereum (ETH), and most major altcoins have incurred intense selloffs. As a result, it led them to lose a significant amount of gains they have had throughout the past couple of months. With this, everyone is saying that this has been a hard few days for the crypto markets.
With this recent downtrend, Ethereum deeply felt the impact. And this comes as the result of the bulls’ inability to hold the parabolic rally incurred earlier this month.
Now, analysts are suggesting the cryptocurrency positioned for some further near-term downside. But first, it will see a relief rally.
Recently, Ethereum is trading down just below 10 percent at its current price of $228. And this marks a notable fall from daily highs of more than $250. The ongoing downtrend of ETH started earlier this month. This was when parabolic rally closed at nearly $290.
The bulls could not sustain the cryptocurrency’s intense upwards momentum that happened against a backdrop of market-wide bullishness. Moreover, this is a warning sign of some underlying weakness.
In addition to that, analysts are noting that Ethereum buyers are currently in the process of guarding a key short-term level that it is trading just a hair over. Then, the support might be enough to let it surge a little higher in the hours ahead.
Prominent crypto trader, Crypto Michaël, was previously a full-time trader at the Amsterdam Stock Exchange. And he pointed to a chart in a tweet elucidating that he expects a bounce at this level. As a result, it will push Ethereum to boost about 20% against its BTC trading pair.
Mid-Term ETH
Though it is still possible that ETH will see a slight recovery from its recent price levels, it seems that its mid-term top is in.
Another famous crypto trader, AMD Traders, stated that he thinks Ethereum has topped out, and it is leading to a complex correction.
Bitcoin must incur some upwards momentum that leads the aggregated market higher. If not, Ethereum and other major altcoins may be in for further near-term losses.
Currently, ETH ranked #2 by market cap. And it declined by 8.06% during the past day. Also, with a volume of $26.1 billion, Ethereum has a market cap of $25.24 billion.
Iran to Use Crypto to Evade Sanctions
Meanwhile, this week, the Iranian general announced a unique way to bypass the sanctions on his country enforced by the United States.
Commander of the Islamic Revolutionary Guard Corps Saeed Muhammad called for Iran to use cryptocurrencies to evade economic sanctions. Based on crypto news, the general addressed a crowd on February 26 in circumventing sanctions, “We must develop solutions such as the exchange of products and the use of cryptocurrencies with our partnerships.”
In the wake of the sanctions set by the Trump Administration, the people of Iran have seen the value of their currency fall significantly. And this was after the withdrawal of the U.S. from the Joint Comprehensive Plan of Action in 2018.
The sanction resulted in Iran being isolated from trade and investment. Since then, the use of cryptos has been on the rise as a way to circumvent them.
