Ethereum falls below $ 600 as the XRP debacle weighs heavily on altcoins

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XRP has shown massive weakness as the cryptocurrency is sued by the SEC. The price fell significantly from $ 0.65 to $ 0.21 in four days, a 67% crash.

Meanwhile, other altcoins have also corrected significantly in the past 24 hours as investors likely fear XRP isn’t the only coin on the SEC’s radar.

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Ether (ETH) fell 14% on December 24th, then rebounded at $ 550. While Chainlink corrected 38% towards a recent low of $ 8. In Sushiswap (SUSHI), the largest corrective and flash crash fell from $ 2.75 to $ 1.10 – a 61% crash.

The question now is whether the XRP debacle will continue to weigh on the altcoin market in the short term. Let’s take a look at the tech specs to identify the current areas of support and resistance.

Ether is looking for a new higher low after the recent decline

ETH / USD 1 week chart. Source: TradingView

The weekly chart for Ether looked great and has not changed from the recent drop-down list. In that regard, the construction is still bullish and on trend.

The recent high of $ 675 confirms a new higher high, after which a higher low will ensure the continuation of the bull market for ether. This higher low is most likely to hit the $ 450 region. This is the previous zone of resistance anxious to get support before the continuation takes place.

However, to receive such a correction, Bitcoin (BTC) should see a major correction. Otherwise, this scenario is unlikely to occur. As long as Ether stays above USD 450, another rally could drive Ether towards USD 1,200 to USD 1,300 next year.

The USD 620 resistance is the next critical level

ETH / USD 1-day chart. Source: TradingView

Ether’s daily chart looks less bullish as it breaks below the critical $ 620 threshold that should have been broken for an immediate bullish continuation. A break above $ 620 would guarantee a new high for the ETH price.

However, the previous resistance zone and $ 620 rejection suggest that more downside moves are likely in the short term.