Crypto Update: Ethereum returns to support after a horror day
Today the worst-case scenario happened, Russia invaded Ukraine. This set off another round of heavy selling on the Crypto markets. The top 10 suffered badly with just over 11% taken off their value at the day’s low.
Ethereum was one of the worst-hit in the top 10, price plunged just over 12% to its new low. Currently, we’re watching the 2,350 support as this level did show plenty of demand back in January on the last key low set by sellers. Price so far, for now, has continued to see some demand at this point but let’s be honest these are not normal times.
Crypto at this point is far from an alternative store of wealth. Coins are not in a safe-haven class at the moment, they’re flat out risk assets and are being treated that way. Gold on the other hand has resumed its safe-haven status. This is not a knock or attack on Crypto just the reality of the situation.
Back to the Ethereum d1 chart. While I’d love to back in the current support level it’s hard under the current circumstances. Escalations could send prices lower and a break of support could set up a move back to the Jan low and a move through that point could suggest 2,000. If support can hold and things in Europe start to stabilize a little we could see a recovery rally. We will be looking for long tails showing exhaustion and fresh demand emerging. But we stress any longs will need to be quick-thinking if sellers return en masse.
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