The bears have managed to take momentary control of the major cryptocurrencies again, and could lead them to visit nearby supports in the coming hours. Ethereum price has not been the exception, losing its barrier of USD 130. Today we see it at USD 126, without much intention of recovering in the short term.
The environment of uncertainty experienced in the financial markets does not end up driving cryptocurrencies. On the contrary, it seems that every hour that passes accumulates bearish tension like the one we saw in days past.
But will this negative feeling continue for long?Does the declining situation of the economic system support further declines in cryptocurrencies?
Below we review a little the current situation and its possible impact on crypto.
Cryptocurrencies could be the key to change the game
Bitcoin undoubtedly has the most advantageous position in the crypto ecosystem, occupying more than 60% of the market capitalization. However, it must be remembered that the price of the other altcoins, like Ethereum, follow their leader.
This place could generate great benefits amid a rapid capital inflow to the new technology that promises so much.
Right now, everything seems to be aligned for a total change of the economic system, and to support the massive adoption of decentralization through Blockchain.
Caitlin Long, veteran of Wall Street, assures that the last maneuver of the American government, to alleviate the lack of liquidity in the market, is the murder of capitalism.
To give you an idea, the issuance of USD 6 trillion by the FED to face the crisis is enough to buy almost 70% of the total gold market at spot price.
Meanwhile, the capitalization of the cryptocurrency market is just $ 175 billion.
Can you imagine what would happen during a collapse of the Fiat system ?, I have no doubt that Bitcoin and other altcoins have an advantage position.
And the Ethereum price?
Ethereum, as second in command, will not be left behind either, it could even gain greater dominance in the market capitalization, thanks to the infinite benefits that its platform offers, with even more useful functions than Bitcoin itself.
And if that were not enough, the great development that the Ethereum project already owns is now about to enter its version 2.0, with the name of Serenity. This hope to make novel implementations in the crypto ecosystem, where the transition to a Blockchain validated through Proof of Stake stands out.
ETH continues to defend its second place with great strength. Its growth has led it to gain even more ground, distancing itself by far from possible competitions.
About Ethereum price
At the time of this writing, it is trading at USD 126.91, with a predisposition to continue falling in the coming hours. Noting that he outright feared something by far, that the Ethereum price lost its $ 130 barrier.
From a technical point of view, the bulls and bears are fighting a heavy battle, with little sign of showing a more likely direction.
The battle is being fought within a triangle-shaped consolidation, which in favor of the theory behind this chartist formation, should tilt towards the continuation of the trend.
However, the figure is developing in an important support area, close to USD 123. In addition, it shows a clear succession of rising highs, so for some it could have a positive connotation.
The takeover of the bulls would be observed, only if they manage to break through the immediate resistance of the consolidation, located at $ 144.
Otherwise, if sellers manage to resume the higher trend, breaking through $ 123, the terrain will be cleared to $ 100. Below, the 2019 low zone between $ 80-90 could again incentivize purchases.