How Low Can it Go? Ethereum Leads the Altcoin Market in a Massive DeclineApr 25, 2018, 2:14PM
The crypto market is red today. And the altcoin sector, led by Ether, is the hardest hit. Price action seems to be driven by technicals and news.
The crypto market is red today. And the altcoin sector, led by Ether, is the hardest hit. Total cryptocurrency market capitalization is now just under $400 billion with Bitcoin dominance rising almost 2 points to hit 39.1%. Out of the top ten assets, only EOS and TRON posted gains today.
Price action seems to be driven by technicals and news catalysts, especially regarding Ethereum's development. There is also controversy over EIP 999, a proposal designed to return lost funds to users.
Ether Price Action
Ether prices hit hard resistance at $700 before correcting sharply to $635 in the early morning hours of Wednesday. $700 now represents the market's primary short-term hurdle, followed by the 50% Fibo ($720). On the downside, prices saw good support at the 200 daily moving average ($635). However, this support level seems to have broken, sending prices as low as $611. The market's focus is now reoriented towards the 61.8% Fibo around $600 and $570.
Controversy over EIP 999
Back in November of 2017, an Ethereum development company called Parity Technologies designed a faulty multi-sig wallet that led to the freezing of 580 wallets with assets worth around $260 million. EIP 999 intended to resolve this problem through a patch that would allow the users to get their funds back.
The week-long vote ended with a "no" with 55% of users voting against the proposal.
Ethereum's developers have also recently published specifications regarding its much anticipated Hybrid Casper Upgrade. When the upgrade is fully implemented (within a few months) it will reduce mining rewards from 3 Ether to 0.6 Ether per block. This is expected to dramatically reduce inflation on the Ethereum network and may put upside pressure on Ethereum prices over the long-term.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.