- The market has seen $31 billion wiped off from $339 billion recorded on June 9 to $298 billion on June 11.
- The 100 SMA will prevent gains at $580 while the 50 SMA creates a confluence with the 61.8% Fibo.
The cryptocurrency market fluctuations are biggest among all the market across the world. In a couple of days, the market has seen $31 billion wiped off from $339 billion recorded on June 9 to $298 billion on June 11. The drop was led by Bitcoin which tanked over 10% on June 10 while other cryptos followed with massive declines as well.
The slump can be linked to three news in the market; the investigation being carried on by CFTC on various exchanges including Coinbase and Kraken. The regulator is looking into the exchanges to ascertain there is no price manipulation of Bitcoin futures. The other news is that a crypto whale moved at least 8,000 BTC from a private unknown wallet to a wallet belong to Huobi exchange. Another event that could have contributed to the slump is the hacking on South Korea-based Coinrail exchange, although the exact amount of the money stolen has not been made public.
Ethereum price analysis
Ethereum price dropped over the weekend due to the general selling pressure in the market. The second largest cryptocurrency by market capitalization extended declines below the support at $600, to test the lows at the end of May around $511. However, there is a bullish momentum that is in progress marginally above $530. The previous support at $560 will offer resistance towards $600. Moreover, the 100 SMA will prevent gains at $580 while the 50 SMA creates a confluence with the 61.8% Fib retracement level with the previous swing high of $734 and a low of $511 slightly below $600.
ETH/USD 4-hour chart