Ethereum falls 6% as market scraps encrypted in the short-term correction

In the last 24 hours, Ethereum has recorded a 6% drop compared to the US dollar, shaking the cryptography market.

The minor correction on the price of Ethereum was expected after the second largest cryptocurrency in the global market showed a sharp 11-day rise since December 28, during which it rose 38% from $ 117 to $ 162.

Vital period for short bears

Before the short-term decline in the price of Ethereum, a cryptocurrency trader with an online alias "The Crypto Dog" said that despite the positive price movement of the asset, the fight to close above a key resistance level can leave the assets vulnerable to shorts and increase sales pressure.

Over the past week, Ethereum has performed relatively well against most cryptographic assets, even at times when the cryptocurrency market has shown weakness in volume and overall trading activity.

However, even with a strong short-term performance, it is difficult to get out of the cryptocurrency market trend and it is rare to see one or two cryptographic assets outperform the rest of the market for long periods of time mainly because most cryptocurrencies tend to be correlated one at the other.

"Maybe I'm just seeing what I want to see, but this chart is screaming at me 'the last chance to do a short ETH," said the trader before the decline in the price of ETH.

Following the decline in the value of the asset, the trader added:

It makes sense to see some rebounds here, given this level on the relationship, so I hesitate to say that this is a great voice. … and of course, I'm just thinking out loud, not trying to invite someone to FOMO in a trade. I contracted ETH for $ 156 and sat relatively comfortable here.

Since January 2, the cryptocurrency market has added about $ 13 billion to its valuation, recovering from $ 125 billion to $ 138 billion. However, in the last two days, the cryptocurrency market has begun to show the first signs of a short-term correction, since over $ 5 billion has been eliminated from the market.

Regardless of the various catalysts that await in the first quarter of this year, most cryptocurrencies are expected to suffer the last phase of the bear market. Many analysts do not foresee the recovery of cryptocurrencies by the middle of 2019 due to the volatility shown by the main digital resources in a low price range.

Low market cap goods to suffer

Many tokens such as Wanchain, Waltonchain, Ontology, Waves and Chainlink have lost around five to nine percent of their value throughout the day, striving to show any momentum.

If Ethereum begins to start a downward movement and the price of Bitcoin drops once again under the sign of $ 4000, it is likely that small capitalization activities will drop by large margins in the coming days, especially if the daily volume of the market continues to go down and sell. the pressure on the crypto assets intensifies.

Click here for a real-time Ethereum price table.

Shutterstock foreground image. TradingView Charts.

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