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Ethereum - ETHUSD
Ethereum - ETH

Ethereum ETH Slumps After PBOC Warning on Cryptocurrencies

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Nikolas Papas Forex Analyst
    Summary:
  • Ethereum slumps to seven month-lows giving up 7.33% at $149.14 after the PBOC pointed out that cryptocurrencies remains unauthorized illegal public

Ethereum slumps to seven month-lows giving up 7.33% at $149.14 after the PBOC pointed out that cryptocurrencies remains unauthorized illegal public financing, suspected of illegal tokens sale, illegal issuance of securities and illegal fund-raising and concluded that crimes enabled via virtual currencies have disrupted the economic and financial disorder. The People’s Bank of China repeated that it will continue to monitor the virtual currency activities within it’s jurisdiction, which will be “disposed of immediately” if discovered.

The comments from PBOC send the crypto market tumbling over 7% in an already fragile crypto sentiment.

ETHUSD today’s move cancels the rally that came after the crypto positive comments from PBOC and sends ethereum deeper into the bearish zone. Ethereum market cap today drops to 16.36 billion with the trading volume above the daily average, reaching 10.78 billion.

Ethereum Technical Outlook

Ethereum breached today the September support that provided strong rebounds the last months and now might find support at $144.96 today’s low while a break below that level will open the way for a move down to April 2 low at $141.95. Breach of that level might add to pressure dow to $132 the lows from end of March.

A rebound today from the daily lows up to $160 mark might cancel the bearish momentum. In that case immediate resistance for Ethereum now stands at $162.68 today’s top, a credible close above that resistance will open the way for a move at yesterday’s high at $175.