Eleven months ago, it was almost unimaginable that there would come a time when a $100 position for Ethereum would be in question. This has however against all odds become the case, a reminder that the crypto market is still highly volatile and changes come fast and dramatically.
After performing well over the weekend and seeing some marginal gains on Monday, the coin has retraced back and is below $90 again. This follows a price drop by bitcoin which has slipped back below $3,500 and with it a majority of altcoins have dropped. On Monday we reported that bitcoin needed to find a trigger and push prices higher, establishing higher resistance levels and support levels. This is yet to be found and it is hence no surprise that the crypto leader is unable to stay above $3,500. Furthermore, there is no sign that there will be a trigger anytime soon making bitcoins position precarious.
The drop has seen the total market cap fall to $108 billion after rallying above $111 yesterday.
Ethereum at the time of press is down by 4% and is trading for little over $89. Last week, Ethereum hit a new year low of $84, a position it quickly bounced back from. Holders hope that the coin will not retrace back to this position and that it is its bottom. Previously, Ethereum has dropped and broken presumed bottoms leading to even further losses. If the coin is to soar and rise again above $100, it will have to find support soon and rally above $90.
While Ethereum is dropping, XRP is still stuck in the $0.30 position even though it has slipped to $0.29 several times in the last couple of hours. The drop follows a rally yesterday that saw the coin soar to $0.31. Given the bearish momentum, XRP will probably settle at little over $0.29.
The last couple of weeks have been bearish for the wider market but if there is to be a chance for a rally anytime soon, major coins need to find support soon and begin rallying. For bitcoin, in particular, the leader needs to stay above the $3,500 position bringing back confidence in the market. Ethereum also needs to stay above $90 if it is to keep its dream of a $100 position alive.
In the next couple of hours, following this bearish mood, it is likely that coins will continue to decline until they can find support and rally again.