Over the past day, the Ethereum cryptocurrency exchange rate(ETH) fell 7% and overcame a key support area at $ 240. With a high degree of probability the bearish trend will continue in the market, so the coin will become cheaper by $ 210 by July 2.
Key points
This week the bull market has appeared on the Ethereum marketthe trend, as a result of which the price of the asset rose from $ 227 to $ 249 (on the Bitstamp exchange). However, on Wednesday, virtual currency began to be actively dumped. Bears broke through the support barriers at $ 240 and $ 230, and the cost of the coin fell to $ 227.
On Thursday, the coin rate corrected to $ 231 andNow fluctuates in the range above the support zone in the region of $ 230. The chart shows a downward trend line with resistance at around $ 233. If buyers overcome this barrier, the rate will rise to $ 240. Otherwise, the price will fall to $ 220 in the next week. Breaking support around $ 220 will trigger an acceleration of the downward movement up to $ 200.
Ethereum is in danger of plummeting
During the last dump, the dynamics of changeETH value went beyond the bullish trend that began in March 2020. If, until June 29, the price does not return to the specified range (as happened on June 21), then a full-scale reversal will take place in the market. A positive scenario involves the increase in the price of an asset to the border of a bearish trend that started in 2019, which is located at $ 267.
In June, the turnover of smart contracts in the blockchainEthereum exceeded 1.5. Paradoxically, the increase in social activity in the decentralized network signals an impending dump. For example, at the end of June 2019, the demand for smart contracts reached 1.2, and the price of ETH fell by 47%. In mid-February 2020, a similar phenomenon occurred: after the growing popularity of the Ethereum blockchain “stumbled” and flew down 70%.
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