Ethereum Down to Test 500.00, Bitcoin at 7,100; More to Come


by | 29th May 2018 | 0 comments

Ethereum and Bitcoin traded lower on Monday as investors remain concerned on the cryptocurrencies situation about regulation, investigations and its ability to deliver all the promises concerning technology and value.

Investors saw Ethereum down 10% in value against the US dollar on Monday as the ETH/USD fell from 575.00. The pair broke below the critical support of 560.00 and closed at 507.00. The cross is now consolidating levels around 520.00, 1.60% positive on Tuesday.

According to experts at Trustnodes, the collapsed occurred in just one “brutal” hour around 5 am UTC. The volume traded at that hour was 180,000 ETH at the Bitfinex exchange, 800% more than the 20,000 ETH exchanged the previous hour.

The selling was attributed to a “one person or team within Bitfinex only, who may have well even market sold a significant amount of ETH. That person or team is very likely to be EOS.”

ETH/USD is now trading at 520.00, slightly positive on Tuesday; however, the big story is that the pair broke 560.00 crucial support and it is currently testing the 500.00 area. Before that, the 450.00 is the price to watch, and the 400.00 area is the possible destiny.

To the upside, the pair needs to recover the 560.00 area before thinking about a trend change. Above that, 615.00 and 640 are essential levels.

Bitcoin extends decline below 7,400

BTC/USD Daily Chart - 29-05-18

BTC/USD closed Monday with a 3.2% decline at 7,100, following a weak attempt to test the 7,400 level, where a dynamic line coming from September 2017 is acting as a resistance. The pair is now trading almost flat at the day.

Bitcoin seems committed to extending its decline after closing the day below the 7,200 level. If the pair consolidates current levels, next supports come at 7,000 and the crucial 6,600.

Expectations for recovery are very limited as the pair broke the mentioned dynamic line. Also, the unit remains now below the 7,630, 8,000 and 8,600 areas.

However, if bitcoin clears up those levels, next resistances are at 8,800, 9,000, and 9,500.

Bitcoin Cash lost the 1,000 definitely

BCH/USD Daily Chart - 29-05-18

Well, definitely is a big word, but the truth is that the BCH/USD just left the 1,000 mark behind after a substantial drop of $120 on Monday. Bitcoin Cash is now trading at 895.30, 1.42% positive on Tuesday.

After flirting with the 1,000 mark for five days, the BCH/USD performed a significant 12% drop on Monday to not even lost the mentioned mark, but also the 900.00 area.

It seems the pair is ready to trade as low as 800.00 and extends its decline to all-time lows at 600.00.

To the upside, the pair needs to recover the 1,000 level before thinking for a substantial recovery. However, technical indicators and moving averages are pointing to the south.

BHC/USD is 34% down in the month, around 62% negative YTD, and it has lost the 74% of its value since its debut on December 20, 2017.

German prosecutors sell seized cryptos for $14 Million

The Federal State of Bavaria in Germany sold $14 million in cryptocurrencies, making the highest crypto sale in Germany legal history, according to a report published by Der Tagesspiegel.

The sale involved cryptocurrencies that were seized in criminal proceedings. Prosecutors commented that the Bayern Central Cybercrime Office ordered an emergency sale due to the risk of price fluctuations of cryptocurrencies.


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