Following the leader of cryptocurrencies by market cap and not going even near to oversold level, ETH price is making it back step by step.
Major part of the day Ethereum price experienced a tremendous lost in price and sellers control, pushing the price below $200 – specifically to $195.03 According to Coinmarketcap. This is the lowest it has hit since the Mid-July market crash (around $145.00).
This all came due to the announcement of Chinese exchanges of Bitcoin-to-fiat on Sep 30, resulting with a market overreaction by traders and sellers, while the support at $233.00 could not withstand and with it gates were open to more decline.
Very worth mentioning is the technical support that the pair found at 76.4 percent Fibonacci retracement level since the previous surging high from $133.79 to $396.41. This particular long-term supporting level saved the day and hoisted the value up again.
With Huobi and OKCoin.cn given an extra month to deliver service on Bitcoin-to-fiat exchanges as they had no part on the Initial Coin Offerings, gave a boost to the trading and investing community and turned the game back to recovering for Bitcoin.
Around $500 in price were gained back by BTC/USD in a matter of hours, and so Ethereum followed as almost all are doing now.
Now it is trading at around $240.00 with a trading volume of almost $2 billion in the last 24-hours. However, in a weekly understanding Ethereum in price against the US Dollar is over 20% lower.
This major price descend should be acknowledged by any trader as an important figure in the complete market such as China exchanges could be leaving the bitcoin-to-fiat trading at the end of this month.
If there is intentions to trade, keep the allocation size small and wait for chances – in general ‘to trade use only play money one can afford to lose’. In the longer term by many analysts this change that has been taking over the community today and market structure could be temporarily as the potential of Ethereum and Bitcoin can not be stopped at this point.