After a day without movement, the cryptocurrency markets lost 5% more on Thursday. Most coins are in red at the time of writing, including Ethereum which is down by almost 10%. The ETH price has dropped sharply from $ 124 to the current $ 117 in a matter of an hour, not a pleasant sight to watch.
While everyone anticipates the new year, the volume of trade decreases after the short run on Christmas Eve. Although markets have fallen by some percentage points, they are still above the levels at the beginning of December. Ethereum still has strong support at the $ 100 level, and the odds that it will test this support before the new year are slim.
Trading Room from Twitter, confirms that the support is around the $ 105 level while the resistance is around $ 160. The market momentum is still fortunately bullish, so further gains are possible.
#Ethereum foul or break it
On the key support
Next support 105-114
Inverse resistance 165-172 pic.twitter.com/LUlkOaGJbG
– Trading Room (@tradingroomapp) December 26, 2018
While the price of Ethereum may deviate slightly from the general trend to cryptocurrency, ultimately ETH has followed the trend of Bitcoin. As always, it is important to keep the price of Bitcoin in mind as this will probably determine the further movements of ETH.
There are no noteworthy events that have happened recently regarding the ETH. It is worth mentioning that Ethereum co-founder Joseph Lubin defined the cryptographic fund for 2018 on December 21st. There are only four more days left to see if Lubin's prediction is correct.
I am calling the criptobottom of 2018. This fund is marked by an epic amount of fear, uncertainty and doubt on the part of our friends in the seals of the 4th and the crypto-fifth.
– Joseph Lubin (@ethereumJoseph) 21 December 2018
So far he has been on the track. ETH hit the lowest point of the year on December 15th when the price touched $ 83.
In other news, BitMex CEO Arthur Hayes told Cointelegraph Japan that ETH could return to the $ 200 level once the new ICOs are out. He believes this may take between a year and 18 months. He also mentioned how he believes the regulation for industry will become more severe. Speaking of STO, Hayes said that they are comparable to ETFs or SPVs (Special Purpose Entities).
We are already seeing platforms that are working on how to start STO. One that comes to mind is Polymath who created the ST-20 token standard on the Ethereum blockchain. Another platform is TokenIQ, which is a STO platform based on the Stellar network.
Security token offerings may just be the next evolution of ICOs that can lead to more conservative investors to cryptocurrencies. After all, there is more credibility behind a certified security offering than a traditional ICO.
Disclaimer: this is not about trading or investment advice. The article above is for entertainment and training purposes only. Please do your own research before buying or investing in any cryptocurrency.
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