China’s recent decisions regarding cryptocurrencies and mining have once again affected the entire market. The largest altcoin, Ethereum (ETH), slumped below $2K, with many cryptocurrencies seeing losses of between 30% and 40%.
The cryptocurrency market has turned into a red picture as a result of China’s repressive policy. The leading cryptocurrency Bitcoin fell to the price band of $ 31,000, while the second most popular cryptocurrency Ethereum fell to $ 1,861.
The largest altcoin is trying to mitigate the decline by showing a significant performance at key support points despite the drop. Reaching an all-time high of $4,361 on May 12, Ethereum dropped by nearly 58% to $1,861.
Although Ethereum is showing signs of recovery at the $ 1,900 levels, the momentum is not enough yet. While the resistance level in front of Ethereum is recorded at $1,950, exceeding this level could open the way for a sequence that takes the price up to $2,065. ETH, the second most popular coin, could break the momentum course if it can break the $1,950 resistance level.
On the other hand, ETH could slide below $1,800 in the ongoing downward price action. In this scenario, the first stop is interpreted as $1,700. In addition, experts state that investors can take an advantageous entry position at the $1,700 level.
Many investors and billionaires think that Ethereum may surpass Bitcoin in the future. However, Ethereum is struggling as developers prefer networks like Polygon and Solana, which are more scalable, fast and have cheaper transaction fees.
High transaction fees on the Ethereum network have dropped significantly as congestion issues have improved. However, it is expected to resolve network issues with Ethereum EIP-1559 and ETH 2.0. According to Glassnode’s on-chain data, the number of active addresses on the Ethereum network has dropped from 676.00 to 474,000, a 30% decrease.
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