Ethereum price droped as low as 387 USD in the 24 hours. It actually crossed below 300 USD, a psychologically important level for Ethereum. Other Cryptocurrencies have dropped, for instance, Ripple price declined by 12% within the last 24 hours and Litecoin by 5%. Is Ethereum, along with other Cryptocurrencies crashing?
No they are not Crashing. it is simply a healthy retrace after some solid gains during the last 2 weeks where Bitcoin reached new-all time highs and faced resistance around the 6000 USD level. Ethereum crossed above 350 USD, Ripple above .26 and Litecoin went from 50 to 70 USD in less than 36 hours. After such a performance, these Cryptocurrencies are due for a healthy retrace.
In our Ethereum price Outlook 2 hours before the Byzantium fork, and when the price was around 340 to 350 USD, we shared the following with our readers:
Scenario # 1 The classic buy the rumor, sell the news scenario
This is a very likely possibility. When you think that some traders are up by more than 40% since the last major dip, it is hard to rule out profit taking. Should this happen, we will see a correction following the announcement of the successful Ethereum Byzantium fork. After a healthy correction, Ethereum will resume what could be a solid uptrend.
We are maintaining our positive outlook for ethereum and believe the current retrace is a healthy pullback. We discussed in our article Ethereum price after a smooth and successful fork the pressure the cryptocurrency market is going through. With that in perspective, we believe this retrace is minimal and actually shows that investors are actually holding on to their Ethereum and stepping up to buy the dips even with the selloff that happened 24 hours ago.