ETH/USD: Ether Dives Under $2,100 as Crypto Rout Turns from Bad to Brutal

Second-biggest token is down 50% from its postelection high as bets on a bright crypto future soured up fairly quickly.

⚠️ Ether Slumps 50% from High

• Ethereum prices ETHUSD were hit hard Friday morning as traders woke up and chose selloff. The second-largest crypto asset was down roughly 10% to float just above $2,000 per token as the bruising and the battering showed no signs of stopping.
• The crypto asset’s drop is bad for those short-term holders who bought around the postelection highs of $4,100. Since then, Ether’s valuation has been axed in half, wiping off more than $250 billion in market value.

✋ When Bottom?

• Is that the bottom? A look at technical analysis shows that Friday’s dip brought the token to a long-term support level around $2,000. If bears pressure the token and drive it under that threshold, then the next possible support could be $1,500.
• And vice versa, the upside is looking at its first resistance level around $2,860 — a previous consolidation area that prevented bulls from breaking higher.

👀 What’s Behind the Crash?

• What’s driving the selling wave? Sour outlook; global uncertainty; murky market sentiment. The new White House administration hasn’t been doing anything publicly available to show that it’s working toward introducing crypto-friendly legislation.
• Globally, trade wars between huge economic powerhouses threaten to upend cash flows around the world. Trump’s tariff game just got real with another 10% slapped on China. Mexico and Canada are looking to pay 25% tariffs on imports into the US starting Tuesday.