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Ethereum price (ETH) is crashing today. It has dropped more than 18% in the past 24 hours to its current price of $ 500. This price is also substantially lower than this week’s $ 625 high. ETH is not alone. Bitcoin has dropped 13% in the past 12 hours while Ripple’s price has dropped more than 30%.
There are three main reasons why Ethereum’s price is falling today. First, many retail buyers are abandoning their previous operations after making substantial profits. In fact, at the weekly high of $ 625, the price was over 66% higher for the month. In fact, the cryptocurrency fear and greed index is still at 93, which is extreme greed, as shown below.
Crypto fear and greed index
Second, the price is down due to Coinbase’s decision to disable Coinbase Pro in response to a SEC complaint. The Pro version has allowed people to trade digital currencies using margin, which helps them multiply their profits and losses. This was a major blow to the company as it had already attracted more than 100,000 users to its platform.
And before today, the UK became the next country to ban crypto derivatives. In the statement, the FCA said the products were relatively risky for retail traders.
Third, analysts believe Ethereum’s price is also falling due to the upcoming ETH 2.0 update. This update will simplify the Ethereum network and make it safer and faster. It will achieve this by moving from a proof of work to a test of stakes.
Therefore, while this transition is partly why the currency has risen, analysts are concerned if it will happen next week as previously planned.
Technical perspectives of the price of Ethereum
On the daily chart, we see that Ethereum’s price rose to a multi-year high of $ 625. This was a 554% high from this year’s low of $ 93. Now, the price has lost more than 20% of those gains and is trading at the 23.6% Fibonacci retracement level.
Therefore, at this stage, the outlook for the currency is neutral. If it manages to break below the 23.6% retracement, the next target will be the 38.2% retracement level at $ 420. However, on a positive side, it is possible for the price to resume its uptrend when the bulls start buying the decline.
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ETH data sheet
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