Traders want to trade where there is the most volatility and potential. One market that presents itself this way, is seen by many as the cryptocurrency industry. However, at the same time even with the advantages of leverage, Bitcoin – the most popular cryptocurrency – can be out of a lot of trader’s budgets due to its high demand and pricing. Ethereum presents itself as an alternative, being classified as within the top 5 bought cryptocurrencies globally, but yet much cheaper than Bitcoin.
Traders looking to trade trends love assets which have long term table price movement rather than a price which is ranging with no clear direction. Ethereum started the week on a downtrend following the rest of the market and has been depreciating for 1 month now.
The asset is currently entering a short to medium term range, neither showing strong bullish nor bearish price movements. It is rumoured that the market turned their capital to the cryptocurrency sector due to fears that demand for local currencies may fade due to the Coronavirus.
The Governor of the Bank of England has announced on the 12th of March, an emergency cut in interest rates. However, he has also stated that the bank’s opinion is that the virus will be temporary and the drop in interest is simply a bridge between two points in time.
The experts again blame the correction of the PlusToken Chinese financial pyramid, the leadership of which moved and, probably, partially brought to the market 13K BTC, which put pressure on prices.
Over the weekend, BitMEX recorded a consistent series of large BTC sales totalling about $36 million. Investors are also worried by news from India, where the supreme court declared the Reserve Bank’s decree unconstitutional and lifted the ban on cryptocurrency banking services, after which the Kraken exchange announced its return to the market.
However, the regulator plans to appeal, which may lead to a repeated ban on companies promoting cryptocurrencies.
When it comes to Ethereum, it is worth highlighting the comments of Vitalik Buterin at the ETHLondonUK conference. He said that the new network will increase productivity by a hundred or even several hundred times, and will also be more anonymous.
Also, don’t forget that the launch of Ethereum 2.0 is still scheduled for the current year. However, Buterin’s optimism is unlikely to help ETH, as the external background remains negative.